Actuarial Notes

SOA Exam P Sample Question 199

Study guide: Exam P-1

An insurance company studies back injury claims from a manufacturing company. The insurance company finds that 40% of workers do no lifting on the job, 50% do moderate lifting, and 10% do heavy lifting.

During a given year, the probability of filing a claim is 0.05 for a worker who does no lifting, 0.08 for a worker who does moderate lifting, and 0.20 for a worker who does heavy lifting.

A worker is chosen randomly from among those who have filed a back injury claim.

Calculate the probability that the worker's job involves moderate or heavy lifting.

  • A) 0.75
  • B) 0.81
  • C) 0.85
  • D) 0.86
  • E) 0.89

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