SOA Exam P Sample Question 537
Study guide: Exam P-1
An actuary accepts an assignment to live and work in Key West, Florida for three years.
The probability that there are no hurricanes in Key West is 0.75 per year. If there is at least one hurricane in Key West in a year, then the probability is 0.35 that the actuary will need to evacuate in that year. There is no other reason for the actuary to evacuate.
The year-to-year occurrences of hurricanes in Key West are independent events.
Calculate the probability that the actuary will need to evacuate at least once from Key West before the assignment is complete.
- A)
0.088 - B)
0.219 - C)
0.240 - D)
0.422 - E)
0.578
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