SOA Exam P Sample Question 603
Study guide: Exam P-1
A property-casualty insurer sells only homeowners insurance. Among the policies that the company sold, 40% belong to policyholders who have a security system for their houses and 60% belong to those who did not.
Assume in any particular year:
i) For any house without a security system, the number of break-ins follows a Poisson distribution, with mean 3. ii) For any house with a security system, the number of break-ins follows a Poisson distribution, and the probability of no break-ins is three times that for a house without a security system.
Calculate the probability that a house has a security system, given that there are exactly two break-ins in a year.
- A)
0.11 - B)
0.27 - C)
0.40 - D)
0.45 - E)
0.55
Answer this question and see the worked solution