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 59 – Joint Distributions
Problem 59A
Two random losses and are jointly modeled by the following density function:
Suppose that both of these losses had occurred. Given that exceeds 2, what is the probability that is less than 2?
Problem 59B
Two random losses and are jointly modeled by the following density function:
Suppose that both of these losses had occurred. What is the probability that only one of them exceeds 2?
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Exam P Practice Problem 58 – Dental Care and Vision Care Expenses
Problem 58A
A health plan offers dental care and vision care benefits. Let represents the total annual amount (in millions) paid in dental care benefits. Let represents the total annual amount (in millions) paid in vision care benefits.
The health plan determined that
 where follows a normal distribution with mean 0 and variance 1,
 where follows a normal distribution with mean 0 and variance 2, and
 and are independent.
Given that the total annual vision care benefits paid by the health plan exceeds 2.5 millions, what is the probability that the total annual dental care benefits paid by the health plan exceeds 2 millions?
Problem 58B
A health plan offers dental care and vision care benefits. Let represents the total annual amount (in millions) paid in dental care benefits. Let represents the total annual amount (in millions) paid in vision care benefits.
The health plan determined that
 where follows a normal distribution with mean 0 and variance 1,
 where follows a normal distribution with mean 0 and variance 1, and
 and are independent.
What is the probability that the total annual dental care benefits exceeds 3 millions and that the total annual vision care benefits exceeds 4 millions?
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Exam P Practice Problem 57 – Lifetimes of Machines
Problem 57A
A factory owner purchased two identical machines for her factory. Let and be the lifetimes (in years) of these two machines. These lifetimes are modeled by the following joint probability density function.
The machine whose lifetime is modeled by the random variable came online 2 years after the beginning of operation of the machine that is modeled by the random variable .
Given that exceeds 2, that is the probability that exceeds 3?
Problem 57B
A company purchased two machines for its factory. Let and be the lifetimes (in years) of these machines. The following is the joint density function of their lifetimes.
The machine whose lifetime is modeled by the random variable came online after the failure of the machine whose lifetime is modeled by .
What is the variance of the total time of operation of these two machines?
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Exam P Practice Problem 55 – Expected Benefit Payment
Problem 55A
The following is the joint density function of two random losses and .
An insurance policy is purchased to cover the total loss subject to a deductible of 2.
When the losses and occur, what is the expected benefit paid by this insurance policy?
Problem 55B
The following is the joint density function of two random losses and .
An insurance policy is purchased to cover the total loss subject to a deductible of 4.
When the losses and occur, what is the expected benefit paid by this insurance policy?
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Exam P Practice Problem 46 – Finding Moment of a Sum
Problem 46A
Suppose that and are random losses that are jointly distributed with the following density function:
Find the second moment of the sum of the two losses.
Problem 46B
Suppose that and are random losses that are jointly distributed with the following density function:
Find the second moment of the sum of the two losses.
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Exam P Practice Problem 43 – Joint Random Losses
Problem 43A
Two random losses and are jointly distributed according to the following density function:
Suppose that these two random losses had occurred. If the total loss is 5, what is the expected value of the loss ?
Problem 43B
Two random losses and are jointly distributed according to the following density function:
Suppose that these two random losses had occurred. If the total loss is 6, what is the expected value of the loss ?
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Exam P Practice Problem 41 – Conditional Expected Number of Balls
Problem 41A
An insurer has a block of business where the number of claims in a year for a policyholder in the block has the following probability distribution.
Two policyholders from this block are randomly selected and observed for a year. It is found that there are exactly four claims for these two policyholders in the past year. What is the probability that one of the policyholders has exactly three claims?
Problem 41B
There are two bowls containing red balls and white balls. Bowl 1 contains 5 red balls and 5 white balls. Five balls are randomly selected from Bowl 1 without replacement. Bowl 2 also contains 5 red balls and 5 white balls. Five balls are randomly selected from Bowl 2 with replacement.
If the total number of red balls drawn from the two bowls is eight, what is the expected number of red balls from Bowl 2?
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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 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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