SOA Exam P Sample Question 316
Study guide: Exam P-1
A health insurance company classifies applicants, depending on their health, into one of three categories: A, B, or C.
The following probabilities apply:
- (i)
P[A] = 5P[C] - (ii)
P[B] = 4P[C] - (iii)
P[\text{zero claims} \mid A] = 0.1 - (iv)
P[\text{zero claims} \mid B] = 0.2 - (v)
P[\text{zero claims} \mid C] = 0.4
Calculate the probability that an insured was classified in category C, given that the insured had zero claims.
- A) 0.040
- B) 0.170
- C) 0.235
- D) 0.294
- E) 0.471
Answer this question and see the worked solution