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Suppose the following holds:

  • [math]A [/math] is independent of both [math]B [/math] and [math]C[/math]
  • [math]\operatorname{P}(B \cup C ) = 0.7 [/math]
  • [math]\operatorname{P}(A) = 0.5 [/math], [math]\operatorname{P}(B) = 0.5 [/math] and [math]\operatorname{P}(C) = 0.3 [/math]
  • [math]\operatorname{P}(A \cup B \cup C) = 1[/math]

Determine [math]\operatorname{P}(A \cap B \cap C) [/math].

  1. 0
  2. 0.1
  3. 0.15
  4. 0.2
  5. 0.3
  • Created by Admin, May 31'22

Each row in the table below gives the probability that a claim frequency will equal 0, 1, 2 or 3 for a specific policy:

0 1 2 3
0.55 0.45 0 0
p 1-p 0 0
0.6 0.3 0.05 0.05

The probability that the sum of the claim frequencies is less than or equal to 3 is 0.95. If the claim frequency events of distinct policies are independent, determine p.

  • 0.045
  • 0.11
  • 0.45
  • 0.55
  • 1
  • Created by Admin, May 31'22

If [math]A [/math] is independent of itself, what are the possible values for [math]\operatorname{P}(A)[/math] ?

  • 0 only
  • 1 only
  • 0 or 1 only
  • 1/2 only
  • Impossible to determine
  • Created by Admin, May 31'22

You are given the following:

  • Events [math]A[/math] and [math]B[/math] are independent
  • [math]\operatorname{P}[A-B] + \operatorname{P}[B-A][/math] = 0.5
  • [math]\operatorname{P}[A] [/math] = 0.65

Determine [math]\operatorname{P}[A \cap B][/math].

  • 0.2275
  • 0.3
  • 0.325
  • 1/3
  • 0.5
  • Created by Admin, May 31'22

An insurance company pays hospital claims. The number of claims that include emergency room or operating room charges is 85% of the total number of claims. The number of claims that do not include emergency room charges is 25% of the total number of claims. The occurrence of emergency room charges is independent of the occurrence of operating room charges on hospital claims.

Calculate the probability that a claim submitted to the insurance company includes operating room charges.

  • 0.10
  • 0.20
  • 0.25
  • 0.40
  • 0.80

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

  • Created by Admin, Apr 30'23

A company sells two types of life insurance policies (P and Q) and one type of health insurance policy. A survey of potential customers revealed the following:

  1. No survey participant wanted to purchase both life policies.
  2. Twice as many survey participants wanted to purchase life policy P as life policy Q.
  3. 45% of survey participants wanted to purchase the health policy.
  4. 18% of survey participants wanted to purchase only the health policy.
  5. The event that a survey participant wanted to purchase the health policy was independent of the event that a survey participant wanted to purchase a life policy.

Calculate the probability that a randomly selected survey participant wanted to purchase exactly one policy.

  • 0.51
  • 0.60
  • 0.69
  • 0.73
  • 0.78

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

  • Created by Admin, Apr 30'23

Let A, B, and C be events such that [math]\operatorname{P}[A] = 0.2[/math], [math]\operatorname{P}[B] = 0.1 [/math], and [math]\operatorname{P}[C] = 0.3 [/math]. The events A and B are independent, the events B and C are independent, and the events A and C are mutually exclusive.

Calculate [math]\operatorname{P}[A \cup B \cup C] . [/math]

  • 0.496
  • 0.540
  • 0.544
  • 0.550
  • 0.600

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

  • Created by Admin, Apr 30'23

Events [math]E[/math] and [math]F[/math] are independent. [math]\operatorname{P}[E] = 0.84[/math] and [math]\operatorname{P}[F] = 0.65[/math].

Calculate the probability that exactly one of the two events occurs.

  • 0.056
  • 0.398
  • 0.546
  • 0.650
  • 0.944

Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

  • Created by Admin, Apr 30'23

Two fair dice, one red and one blue, are rolled.

Let A be the event that the number rolled on the red die is odd.

Let B be the event that the number rolled on the blue die is odd.

Let C be the event that the sum of the numbers rolled on the two dice is odd. Determine which of the following is true.

  • A, B, and C are not mutually independent, but each pair is independent.
  • A, B, and C are mutually independent.
  • Exactly one pair of the three events is independent.
  • Exactly two of the three pairs are independent.
  • No pair of the three events is independent.

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

  • Created by Admin, Apr 30'23

In any 12-month period, the probability that a home is damaged by fire is 20% and the probability of a theft loss at a home is 30%. The occurrences of fire damage and theft loss are independent events.

Calculate the probability that a randomly selected home will either be damaged by fire or will have a theft loss, but not both, during the next year.

  • 0.30
  • 0.38
  • 0.44
  • 0.50
  • 0.56

Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

  • Created by Admin, May 09'23