SOA Exam P Sample Question 194
Study guide: Exam P-1
A health insurance policy covers visits to a doctor's office. Each visit costs 100. The annual deductible on the policy is 350. For a policy, the number of visits per year has the following probability distribution:
| Number of Visits | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|---|
| Probability | 0.60 | 0.15 | 0.10 | 0.08 | 0.04 | 0.02 | 0.01 |
A policy is selected at random from those where costs exceed the deductible.
Calculate the probability that this policyholder had exactly five office visits.
- A) 0.050
- B) 0.133
- C) 0.286
- D) 0.333
- E) 0.429
Answer this question and see the worked solution