Exam P Practice Problem 108 – random selection of balls
Both 108A and 108B use the following information.
Bowl One contains 1 blue ball and 4 orange balls. Bowl Two contains 3 blue balls and 2 orange balls. A bowl is chosen at random. Balls are randomly chosen one at a time from the chosen bowl, with each chosen ball returning to the bowl.
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Problem 108A
What is the probability that four of the first six selections are blue ball?
Problem 108B
If four of the first six selections are blue balls, what is the probability that the balls are selected from Bowl One?
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Exam P Practice Problem 107 – wait time at a busy restaurant
Both 107A and 107B use the following probability density function.
Problem 107A
The wait time (in minutes) for a table at a busy restaurant on the weekend is distributed according to the density function given above.
A customer plans to dine in this restaurant on two different weekends.
Determine the expected value of the longest wait of these two visits to the restaurant.
Problem 107B
The wait time (in minutes) for a table at a busy restaurant on the weekend is distributed according to the density function given above.
A customer plans to dine in this restaurant on two different weekends.
Determine the expected value of the shortest wait of these two visits to the restaurant.
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Exam P Practice Problem 106 – average height of students
Problem 106A
Heights of male students in a large university follow a normal distribution with mean 69 inches and standard deviation 2.8 inches.
Four male students from this university are randomly selected.
Determine the probability that the average height of the selected students is between 5 feet 7 inches and 5 feet 11 inches.
Note that one feet = 12 inches.
The answers are based on this normal table from SOA.
Problem 106B
Heights of female students in a large university follow a normal distribution with mean 65 inches and standard deviation 2.2 inches.
Sixteen female students are randomly selected.
Determine the probability that the average height of the selected students is greater than 5 feet 6 inches.
Note that one feet = 12 inches.
The answers are based on this normal table from SOA.
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Exam P Practice Problem 105 – testing electronic devices
Problem 105A
The length of operation (in years) for an electronic device follows an exponential distribution with mean 4. Ten such devices are being observed for one year for a quality control study.
The lengths of operation for these devices are independent.
Determine the probability that no more than three of the devices stop working before the end of the study.
Problem 105B
Twelve patients are randomly selected from a population of patients with history of heart disease to be tracked in a health study. The study begins with an initial assessment of health status. The participants are instructed to return for a follow up visit one year after the initial assessment.
For these patients, the time (in years) from the initial assessment to the next heart attack has an exponential distribution with mean 6.25 years. The times to the next heart attack for these patients are independent.
Determine the probability that ten or more patients experience no heart attack prior to the oneyear follow up visit.
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Exam P Practice Problem 104 – two random insurance losses
Problem 104A
Two random losses and are jointly modeled by the following density function:
Suppose that both of these losses had occurred. Given that is exactly 2, what is the probability that is less than 1?
Problem 104B
Two random losses and are jointly modeled by the following density function:
Suppose that both of these losses had occurred. Determine the probability that exceeds 2 given that the loss is known to be 2.
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Exam P Practice Problem 103 – randomly selected auto collision claims
Problem 103A
The size of an auto collision claim follows a distribution that has density function where .
Two randomly selected claims are examined. Compute the probability that one claim is at least twice as large as the other.
Problem 103B
Auto collision claims follow an exponential distribution with mean 2.
For two randomly selected auto collision claims, compute the probability that the larger claim is more than four times the size of the smaller claims.
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Exam P Practice Problem 102 – estimating claim costs
Problem 102A
Insurance claims modeled by a distribution with the following cumulative distribution function.
The insurance company is performing a study on all claims that exceed 3. Determine the mean of all claims being studied.
Problem 102B
Insurance claims modeled by a distribution with the following cumulative distribution function.
The insurance company is performing a study on all claims that exceed 4. Determine the mean of all claims being studied.
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Exam P Practice Problem 101 – auto collision claims
Problem 101A
The amount paid on an auto collision claim by an insurance company follows a distribution with the following density function.
The insurance company paid 64 claims in a certain month. Determine the approximate probability that the average amount paid is between 7.36 and 8.84.
Problem 101B
The amount paid on an auto collision claim by an insurance company follows a distribution with the following density function.
The insurance company paid 36 claims in a certain month. Determine the approximate 25th percentile for the average claims paid in that month.
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Exam P Practice Problem 99 – When Random Loss is Doubled
Problem 99A
A business owner faces a risk whose economic loss amount follows a uniform distribution over the interval . In the next year, the loss amount is expected to be doubled and is expected to be modeled by the random variable .
Suppose that the business owner purchases an insurance policy effective at the beginning of next year with the provision that any loss amount less than or equal to 0.5 is the responsibility of the business owner and any loss amount that is greater than 0.5 is paid by the insurer in full. When a loss occurs next year, determine the expected payment made by the insurer to the business owner.
Problem 99B
A business owner faces a risk whose economic loss amount has the following density function:
In the next year, the loss amount is expected to be doubled and is expected to be modeled by the random variable .
Suppose that the business owner purchases an insurance policy effective at the beginning of next year with the provision that any loss amount less than or equal to 1 is the responsibility of the business owner and any loss amount that is greater than 1 is paid by the insurer in full. When a loss occurs next year, what is the expected payment made by the insurer to the business owner?
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