SOA Exam P Sample Question 528
Study guide: Exam P-1
An actuary makes the following observations about an insurer's fire and flood insurance policies:
i) The probability that a client purchases neither policy exceeds the probability that a client purchases both policies by 0.20.
ii) The probability that a client purchases both policies is positive.
iii) The probability that a client purchases a fire policy given that the client purchases a flood policy is twice the probability that a client purchases a flood policy given that the client purchases a fire policy.
Calculate the probability that a client purchases a flood policy.
- A)
0.27 - B)
0.33 - C)
0.40 - D)
0.53 - E)
0.80
Answer this question and see the worked solution