SOA Exam P Sample Question 544
Study guide: Exam P-1
Assume the distribution of the number of automobile claims per year for an auto insurance policyholder is described by the following table:
| Number of Claims | Probability |
|---|---|
| 0 | 0.4 |
| 1 | 0.3 |
| 2 | 0.2 |
| 3 | 0.1 |
For each claim that occurs, there is a probability of 0.5 that the claim size is 500 and a probability of 0.5 that the claim size is 1000. Claim sizes are mutually independent.
Calculate the probability that the total claim size for a randomly selected policyholder this year is greater than or equal to 2000, given that at least two claims occur.
- A)
0.14 - B)
0.25 - C)
0.29 - D)
0.46 - E)
0.88
Answer this question and see the worked solution