SOA Exam P Sample Question 211
Study guide: Exam P-1
A flood insurance company determines that N, the number of claims received in a month, is a random variable with P[N=n]=\frac{2}{3^{n+1}}, for n=0,1,2,\ldots. The numbers of claims received in different months are mutually independent.
Calculate the probability that more than three claims will be received during a consecutive two-month period, given that fewer than two claims were received in the first of the two months.
- A) 0.0062
- B) 0.0123
- C) 0.0139
- D) 0.0165
- E) 0.0185
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