Actuarial Notes

SOA Exam P Sample Question 564

Study guide: Exam P-1

The length of an exchange student's phone call depends on whether the call is domestic or international. Lengths of domestic calls are exponentially distributed with a mean of 0.75 minutes, and lengths of international calls are exponentially distributed with a mean of 0.50 minutes. Each call has a 40% probability of being a domestic call and a 60% probability of being an international call.

Calculate the probability that the length of a randomly selected phone call by the student is between one and three minutes.

  • A) 0.178
  • B) 0.200
  • C) 0.222
  • D) 0.250
  • E) 0.378

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