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ABy Admin
May 31'22

Exercise

An actuary analyzed historical auto and home insurance data and has concluded the following:

  • The probability that a policyholder with only home coverage reports a claim is 3%
  • The probability that a policyholder with only car coverage reports a claim is 5%
  • The probability that a policyholder with both home and car coverage reports a claim is 6%
  • 60% of policyholders holding car or home coverage have car coverage and 70% have home coverage

Determine the probability that a policyholder holds car insurance coverage, given that the policyholder reported a claim.

  1. 4/15
  2. 4/9
  3. 0.6471
  4. 2/3
  5. 11/15
ABy Admin
May 31'22

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