SOA Exam P Sample Question 466
Study guide: Exam P-1
An individual buys an automobile policy and a homeowners policy for one year. The probability of an automobile claim is 0.10 and the probability of a homeowners claim is 0.05. Neither policy can have more than one claim. The correlation between the numbers of claims on these policies is 0.30.
Calculate the probability that both policies will have a claim.
- A)
0.005 - B)
0.006 - C)
0.025 - D)
0.033 - E)
0.045
Answer this question and see the worked solution