SOA Exam P Sample Question 476
Study guide: Exam P-1
An insurer sells an annual group life and disability policy.
The joint probability distribution for death and disability is:
| Disabilities \ Deaths | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| 0 | 0.45 | 0.09 | 0.03 | 0.01 | 0.01 |
| 1 | 0.08 | 0.06 | 0.02 | 0.01 | 0.01 |
| 2 | 0.07 | 0.05 | 0.02 | 0.01 | 0.00 |
| 3 | 0.04 | 0.02 | 0.01 | 0.01 | 0.00 |
Calculate the probability of at least two disabilities, given no more than one death.
- A)
0.14 - B)
0.17 - C)
0.18 - D)
0.21 - E)
0.32
Answer this question and see the worked solution
Concepts tested
- Conditional Probability Function
- Joint Probability Function
- Conditional and Marginal Probability Functions
- Conditional Probability