SOA Exam P Sample Question 600
Study guide: Exam P-1
Hospitalization losses under a certain policy are mutually independent and each has cumulative distribution function
F(x) = \begin{cases}
0, & \text{for } x < 0 \\[4pt]
\dfrac{x + 15x^2}{16}, & \text{for } 0 \le x \le 1 \\[4pt]
1, & \text{for } x > 1
\end{cases}For each hospitalization loss, the insurer reimburses up to a maximum of 0.80.
Calculate the probability that a policyholder's first partially unreimbursed hospitalization loss occurs on the third hospitalization.
- A)
0.027 - B)
0.080 - C)
0.128 - D)
0.148 - E)
0.350
Answer this question and see the worked solution