Actuarial Notes

SOA Exam P Sample Question 639

Study guide: Exam P-1

This year, a dental insurance company reimburses up to two fillings and one root canal. A policyholder's number of fillings and number of root canals are independent and Poisson distributed with means 1 and 0.3, respectively.

Determine the probability that the policyholder has no unreimbursed fillings and no unreimbursed root canals this year.

  • A) (0.5e^{-1})(0.3e^{-0.3})
  • B) (2.5e^{-1})(1.3e^{-0.3})
  • C) 1 - (2.5e^{-1})(1.3e^{-0.3})
  • D) (1 - 2.5e^{-1})(1 - 1.3e^{-0.3})
  • E) 1 - (1 - 2.5e^{-1})(1 - 1.3e^{-0.3})

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