SOA Exam P Sample Question 460
Study guide: Exam P-1
Claims under a product liability policy have the following characteristics:
i) The number of claims does not exceed two.
ii) The probability that the number of claims is exactly one is 0.08.
iii) The probability that the number of claims is exactly two is 0.02.
iv) For n = 1 or 2 claims, the total claim amount under the policy is a random variable X with cumulative distribution function
F(x) = 1 - \left(\frac{500n}{x}\right), \qquad \text{for } x \geq 500n.Calculate the probability that there is exactly one claim, given that there is at least one claim and the total claim amount under the policy is less than or equal to 2000.
- A)
1/2 - B)
3/5 - C)
2/3 - D)
3/4 - E)
6/7
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