Actuarial Notes

SOA Exam P Sample Question 562

Study guide: Exam P-1

The damage from an accident at a certain intersection follows a uniform distribution on the interval [a, b], where 0 < a < 3. The probability that the damage is greater than 4, given that it is greater than 3, is 0.90. The probability that the damage is greater than 4, given that it is less than 11, is 0.70.

Calculate the unconditional probability that the damage is greater than 4.

  • A) 0.70
  • B) 0.75
  • C) 0.80
  • D) 0.85
  • E) 0.90

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