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Latest revision as of 22:53, 9 May 2023
The annual numbers of thefts a homeowners insurance policyholder experiences are analyzed over three years.
Define the following events:
- A = the event that the policyholder experiences no thefts in the three years.
- B = the event that the policyholder experiences at least one theft in the second year.
- C = the event that the policyholder experiences exactly one theft in the first year.
- D = the event that the policyholder experiences no thefts in the third year.
- E = the event that the policyholder experiences no thefts in the second year, and at least one theft in the third year.
Determine which three events satisfy the condition that the probability of their union equals the sum of their probabilities.
- Events A, B, and E
- Events A, C, and E
- Events A, D, and E
- Events B, C, and D
- Events B, C, and E
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.