SOA Exam P Sample Question 502
Study guide: Exam P-1
A medical insurance policyholder just experienced a hospitalization, resulting in an undetermined financial loss that is exponentially distributed. The policyholder has Plan A, which reimburses the first two units for each hospitalization. The policyholder could have chosen Plan B, which reimburses the first ten units for each hospitalization.
The probability that this hospitalization is completely covered under Plan A is 0.15.
Calculate the probability that this hospitalization would have been completely covered had the policyholder chosen Plan B.
- A)
0.200 - B)
0.351 - C)
0.443 - D)
0.556 - E)
0.750
Answer this question and see the worked solution