SOA Exam P Sample Question 418
Study guide: Exam P-1
A policyholder purchases car insurance for two years. In a given year, the policyholder's number of car accidents is zero with probability 0.9, exactly one with probability 0.08, and exactly two with probability 0.02. The number of accidents in the first year is independent of the number in the second.
Calculate the probability that the policyholder has one accident in each year, given that the policyholder has a total of exactly two accidents.
- A)
0.006 - B)
0.042 - C)
0.151 - D)
0.262 - E)
0.960
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