SOA Exam P Sample Question 532
Study guide: Exam P-1
In a certain region, 5% of all banks will fail in the next five years. The FDIC insures 80% of the banks in the region. Only 3% of the banks in the region insured by the FDIC will fail in the next five years.
Calculate the probability that a bank in the region that fails in the next five years is insured by the FDIC.
- A)
0.02 - B)
0.04 - C)
0.06 - D)
0.48 - E)
0.60
Answer this question and see the worked solution