SOA Exam P Sample Question 406
Study guide: Exam P-1
The number of monthly claims on an insurance policy has a distribution given by
| Number of monthly claims | Probability |
|---|---|
| 0 | s |
| 1 | t |
| 2 | 0.75s |
| 3 or more | 0 |
A random sample of five policies is selected, and the claims for a given month are recorded. The numbers of claims on the five policies are mutually independent. Let the random variable Y denote the number of policies from the sample with fewer than two monthly claims.
Let c = P[Y = 5].
Determine which of the following is equal to t.
- A)
\dfrac{4 - 4c^{0.2}}{3} - B)
\dfrac{3 - 7c^{0.2}}{3} - C)
\dfrac{4c^{0.2} - 4}{3} - D)
\dfrac{5c^{0.2} - 3}{3} - E)
\dfrac{7c^{0.2} - 4}{3}
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