Actuarial Notes

SOA Exam P Sample Question 534

Study guide: Exam P-1

In a given year, the number of accidents an auto insurance policyholder experiences is Poisson distributed with mean 0.10. The numbers of accidents by year are independent.

Calculate the probability that a policyholder's first accident occurs during the sixth year of the policy, given that the policyholder experiences no accidents during the first two years of the policy.

  • A) 0.0009
  • B) 0.0577
  • C) 0.0705
  • D) 0.0729
  • E) 0.3297

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