SOA Exam P Sample Question 309
Study guide: Exam P-1
An insurer divides a city into three zones and assesses risks associated with fire loss as follows:
| Zone | Probability of fire loss for a home in a given year | Percentage of insurer's fire policies |
|---|---|---|
| A | 0.015 | 40% |
| B | 0.011 | 35% |
| C | 0.008 | 25% |
Given that a fire loss occurs in a home covered by the insurer, calculate the probability that the home is in Zone A.
- A) 0.349
- B) 0.400
- C) 0.441
- D) 0.465
- E) 0.506
Answer this question and see the worked solution