Exercise


ABy Admin
Apr 28'23

Answer

Solution: C

Letting t denote the relative frequency with which twin-sized mattresses are sold, we have that the relative frequency with which king-sized mattresses are sold is 3t and the relative frequency with which queen-sized mattresses are sold is (3t+t)/4, or t. Thus, t = 0.2 since t + 3t + t = 1. The probability we seek is 3t + t = 0.80.

Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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