SOA Exam P Sample Question 646
Study guide: Exam P-1
A car rental insurance policyholder rents a car for seven days. For any day, the probability that the policyholder has no claims is a constant r. The occurrences of claims on different days are mutually independent.
Determine the probability that the policyholder has at least one claim during the seven-day rental period.
- A)
r^7 - B)
(1-r)r^6 - C)
7(1-r)r^6 - D)
1 - r^7 - E)
(1-r)^7
Answer this question and see the worked solution