SOA Exam P Sample Question 468
Study guide: Exam P-1
Drivers are classified as either high-risk or low-risk. Ten percent of drivers are classified as high-risk. The risk classification of each driver remains the same from this year to next year.
The probability that a driver classified as high-risk is involved in an accident is 0.12 for this year and, independently, 0.12 for next year. The probability that a driver classified as low-risk is involved in an accident is 0.05 for this year and, independently, 0.05 for next year.
Calculate the probability that a driver is involved in an accident next year, given that the driver is involved in an accident this year.
- A)
0.004 - B)
0.014 - C)
0.057 - D)
0.065 - E)
0.099
Answer this question and see the worked solution