SOA Exam P Sample Question 531
Study guide: Exam P-1
A policyholder is insured against both fire and theft claims. The probability of a fire claim is 10%. The probability of a theft claim is 30%.
Let p be the probability of having neither a fire nor a theft claim, assuming fire and theft claims are independent.
Let r be the probability of having neither a fire nor a theft claim, assuming fire and theft claims are mutually exclusive.
Calculate p - r.
- A)
-0.06 - B)
-0.03 - C)
0.00 - D)
0.03 - E)
0.06
Answer this question and see the worked solution