Exam P Practice Problem 67 – Statistical Studies of Insured Drivers
Problem 67A
An auto insurance company performed a statistical study on its insured drivers. The following table shows the results.
The authors of the statistical study also found that for any insured driver in the study, the annual number of claims follows a Poisson distribution.
Suppose that an insured driver in the study had exactly 2 claims in the past year. What is the probability that the insured driver is from the age group 1620?
Problem 67B
An auto insurance company performed a statistical study on its younger insured drivers (under 35 years of age). The following table shows the results.
The authors of the statistical study also found that for any insured driver in the study, the annual number of claims follows a Poisson distribution. Furthermore, for any insured driver in the study, the number of claims in one year is independent of the number of claims in any other year.
Suppose that in a 2year period, an insured driver in the study had exactly 1 claim in year 1 and exactly 2 claims in year 2. What is the probability that the insured driver is from the age group 1617?
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Exam P Practice Problem 65 – Total Insurance Payment
Problem 65A
The number of random losses in a calendar year for an individual has a Poisson distribution with mean 1. When a loss occurs, the individual loss amount is either 2 or 4, with probabilities 0.6 and 0.4, respectively.
When multiple losses occur for this individual, the individual loss amounts are independent.
This individual purchases an insurance policy to cover the random losses with a deductible of 1 per loss.
In the next calendar year, let be the total payment made by the insurance company to the insured. Calculate .
Problem 65B
The number of claims in a calendar year for an insured has a Poisson distribution with mean 1.2. When a claim occurs, the individual claim amount is either 10 or 20, with probabilities 0.8 and 0.2, respectively.
When multiple claims occur for this insured, the individual claim amounts are independent.
This individual purchases an insurance policy to cover the random losses with a deductible of 5 per loss.
In the next calendar year, let be the total payment made by the insurance company to the insured. Calculate .
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Exam P Practice Problem 63 – Total Minutes of Telephone Calls
Problem 63A
For a certain individual, the daily number of telephone calls (incoming or outgoing) has a Poisson distribution with mean 12. The length in time (in minutes) of each telephone call has an exponential distribution with mean 5 minutes.
The length of time of one telephone call is independent of the length of time of any other telephone call.
On a given day, this individual makes or receives 4 telephone calls. What is the probability that this person is on the telephone for more than half an hour?
Problem 63B
For a certain individual, the daily number of telephone calls (incoming or outgoing) has a Poisson distribution with mean 16. The length in time (in minutes) of each telephone call has an exponential distribution with mean 8 minutes.
The length of time of one telephone call is independent of the length of time of any other telephone call.
On a given day, this individual makes or receives 5 telephone calls. What is the probability that this person is on the telephone for more than 45 minutes?
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Exam P Practice Problem 53 – Hospital Expense Plans
Problem 53A
An insurer sells a hospital expense plan that pays a fixed sum per day of hospitalization. Suppose that the number of days of hospitalization in a year for someone insured under this plan has a Poisson distribution with mean 0.8.
In each calendar year, the plan pays 2,000 for each day of hospitalization subject to the condition that the first two days of hospitalization are the responsibilities of the insured.
What is the expected payment for hospitalization during a calendar year under this hospital expense plan?
Problem 53B
An insurer sells a hospital expense plan that pays a fixed sum per day of hospitalization. Suppose that the number of days of hospitalization in a year for someone insured under this plan has the following probability function.
In each calendar year, the plan pays 1,000 for each day of hospitalization subject to the condition that the first day of hospitalization is the responsibility of the insured.
What is the expected payment for hospitalization during a calendar year under this hospital expense plan?
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Exam P Practice Problem 44 – Traffic Statistics Using Poisson Distribution
Problem 44A
The number of car accidents in a stretch of a highway (Highway #1) has a Poisson distribution with a mean of 4 per week. The number of car accidents in a stretch of another highway (Highway #2) has a Poisson distribution with a mean of 8 per week.
Assume that on a weekly basis, the number of accidents in one highway is independent of the number of accidents in the other highway.
In one particular week, exactly 5 auto accidents took place in these two highways. What is the probability that Highway #1 had exactly 2 accidents in this particular week?
Problem 44B
The number of cars (in a day) that break down in a stretch of a highway (Highway #1) has a Poisson distribution with a mean of 16. The number of cars (in a day) that break down in a stretch of another highway (Highway #2) has a Poisson distribution with a mean of 8.
Assume that on a daily basis, the number of cars breaking down in one highway is independent of the number of cars breaking down in the other highway.
In one particular day, exactly 8 cars were found to break down in these two highways. What is the probability that Highway #1 had exactly 5 cars breaking down in this particular day?
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Exam P Practice Problem 38 – Poisson Distribution
Problem 38A
Two customers (Customer #1 and Customer #2) just purchased identical insurance coverage. The number of claims for each insured is assumed to follow a Poisson distribution with mean 1.5 per year. Assume that the number of claims for Customer #1 is independent of the number of claims for Customer #2.
What is the probability that in the coming year, Customer #1 will have exactly one claim and Customer #2 will have exactly two claims?
Problem 38B
The number of customers visiting a jewelry store on a weekday has a Poisson distribution with mean 4 per hour. Assume that for this jewelry store the number of customers in any given hour on a weekday is independent of the number of customers in any other hour on a weekday.
A prospective buyer of this jewelry store observes the business on a Wednesday for two onehour periods (from 1 PM to 2 PM and 4 to 5 PM).
What is the probability that there will be 3 customers visiting from 1 PM to 2 PM and 5 customers visiting from 4 to 5 PM?
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Exam P Practice Problem 37 – Number of Claims
Problem 37A
An insurer issued insurance policies to two independent insureds (Insured #1 and Insured #2). The number of claims in the upcoming year for each insured has a Poisson distribution with mean 1.
 What is the probability that each of the insureds has at least one claim in the upcoming year?
 What is the probability that each of the insureds has at least one claim given that there is at least one claim in the upcoming year among these two insureds?
Problem 37B
The number of ambulances passing through a busy intersection (while on duty) in a large city has a Poisson distribution with mean 0.2 per hour. Assume that the number of ambulances passing through this intersection in any given hour is independent of the number of ambulances in any other hour.
As part of a traffic study, this intersection is observed for two onehour periods (from 9 AM to 10 AM and 1 PM to 2 PM).
 What is the probability that there is at least one ambulance passing through the intersection during these two hours?
 What is the probability that the period of 9 AM to 10 AM has at least one ambulance given that there is at least one ambulance passing through the intersection during these two hours?
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Exam P Practice Problem 36 – Number of Claims
This post has no alternate problem. It has one problem with 2 parts.
Problem 36
A claim examiner of an insurer reviews the claim history of two independent insureds. Let be the annual number of claims of the first insured (Insured # 1). Let be the annual number of claims of the second insured (Insured # 2). The claim examiner finds tht follows a Poisson distribution with mean 1, and that follows a distribution with the following probability function.
 Between these two insureds, what is the probability that one of the insureds has two more claims than the other insured in a year?
 Given that one of the insured has two more claims than the other insured, what is the probability that Insured # 1 has more claims than Insured # 2?
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Exam P Practice Problem 34 – Number of Claims
Problem 34A
An actuary is asked to review the claim history in a twoyear period for one policyholder. The number of claims in any year for this policyholder has a Poisson distribution with mean 0.5 and is independent of the number of claims in any previous year.
The actuary finds that the policyholder has made 5 claims in the twoyear period.
What is the probability that the policyholder has made more than three claims in the first year of the review period?
Problem 34B
An actuary is asked to review the claim history in a twoyear period for one policyholder. In the first year of the review period, the number of claims for this policyholder has a Poisson distribution with mean 0.3. In the second year, the number of claims for this policyholder has a Poisson distribution with mean 0.6.
The number of claims in one year is independent of the number of claims in any previous year.
The actuary finds that the policyholder has made 5 claims in the review period. What is the probability that the policyholder has made at least three claims in the first year of the review period?
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Exam P Practice Problem 33 – Total Claim Amount
Problem 33A
The number of claims in a calendar year for an insured has a Poisson distribution with mean 1. When a claim occurs, the individual claim amount, regardless of how many claims the insured will have in the calendar year, is either 1 or 2, with probabilities 0.6 and 0.4, respectively.
When multiple claims occur for this insured, the individual claim amounts are independent.
In the next calendar year, what is the probability that the total claim amount for this insured will be 5?
Problem 33B
The number of claims in a calendar year for an insured has a Poisson distribution with mean 1.2. When a claim occurs, the individual claim amount, regardless of how many claims the insured will have in the calendar year, is either 2 or 4, with equal probabilities.
When multiple claims occur for this insured, the individual claim amounts are independent.
In the next calendar year, what is the probability that the total claim amount for this insured will be 10?
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