The Infinite Actuary Exam 1/P Online Seminar

A.1. Practice Problems on Fundamentals of Probability

1. An analysis of an insurance companys policyholders finds the following:
(i) Twice as many policyholders buy auto insurance as buy home insurance
(ii) 70% of policyholders buy either auto insurance or home insurance
(iii) 20% of policyholders buy both auto insurance and home insurance
What fraction of policyholders buy home insurance but not auto insurance?
A. 10.0%

B. 20.0%

C. 23.3%

D. 25.0%

E. 30.0%

2. Suppose that 40% of customers buy fire insurance, 30% buy theft insurance, and 20% buy both fire and
theft insurance. How many buy either fire insurance or theft insurance, but not both?
A. 10%

B. 20%

C. 30%

D. 40%

E. 50%

3. You are given that P[A B 0 ] = 0.3 and P[(A B)0 ] = 0.4. What is P[B]?
A. 0.2

B. 0.3

C. 0.5

D. 0.6

E. 0.7

4. [SOA 2; S00.01] The probability that a visit to a primary care physicians (PCP) office results in neither
lab work nor referral to a specialist is 35%. Of those coming to a PCPs office, 30% are referred to
specialists and 40% require lab work. Determine the probability that a visit to a PCPs office results in
both lab work and referral to a specialist.
A. 0.05

B. 0.12

C. 0.18

D. 0.25

E. 0.35

D. 0.6

E. 0.8

5. [SOA 3; S01.12] You are given P[A B] = 0.7 and P[A B 0 ] = 0.9.
Determine P[A].
A. 0.2

B. 0.3

C. 0.4

6. [SOA 8; F01.09] Among a large group of patients recovering from shoulder injuries, it is found that 22%
visit both a physical therapist and a chiropractor, whereas 12% visit neither of these. The probability that
a patient visits a chiropractor exceeds by 0.14 the probability that a patient visits a physical therapist.
Determine the probability that a randomly chosen member of this group visits a physical therapist.
A. 0.26

B. 0.38

C. 0.40

D. 0.48

E. 0.62

7. [Course 110; F86.11] Let P[A B] = 0.2, P[A] = 0.6 and P[B] = 0.5. Find P[A0 B 0 ].
A. 0.1
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B. 0.3

C. 0.7
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D. 0.8

E. 0.9
A.1 Problems

8. 75% of students who graduated from high school in 2006 took the SAT, and 40% of 2006 high school
graduates took the ACT. If 30% of students who graduated from high school in 2006 took both the ACT
and the SAT, how many took one test but not the other?
A. 45%

B. 55%

C. 65%

D. 75%

E. 85%

9. [SOA 1; S03.01] A survey of a groups viewing habits over the last year revealed the following information:
(i) 28% watched gymnastics
(ii) 29% watched baseball
(iii) 19% watched soccer
(iv) 14% watched gymnastics and baseball
(v) 12% watched baseball and soccer
(vi) 10% watched gymnastics and soccer
(vii) 8% watched all three sports.
Calculate the percentage of the group that watched none of the three sports during the last year.
A. 24

B. 36

C. 41

D. 52

E. 60

10. [SOA 5; F00.03] An auto insurance company has 10,000 policyholders. Each policyholder is classified as
(i) young or old;
(ii) male or female; and
(iii) married or single
Of these policyholders, 3,000 are young, 4,600 are male, and 7,000 are married. The policyholders can
also be classified as 1,320 young males, 3,010 married males, and 1,400 young married persons. Finally,
600 of the policyholders are young married males.
How many of the companys policyholders are young, female, and single?
A. 280

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B. 423

C. 486

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D. 880

E. 896

A.1 Problems

11. [SOA 128] An insurance agent offers his clients auto insurance, homeowners insurance and renters insurance. The purchase of homeowners insurance and the purchase of renters insurance are mutually exclusive.
The profile of the agents clients is as follows:
(i) 17% of the clients have none of these three products.
(ii) 64% of the clients have auto insurance.
(iii) Twice as many of the clients have homeowners insurance as have renters insurance.
(iv) 35% of the clients have two of these three products.
(v) 11% of the clients have homeowners insurance, but not auto insurance.
Calculate the percentage of the agents clients that have both auto and renters insurance.
A. 7%

B. 10%

C. 16%

D. 25%

E. 28%

12. [SOA 134] A mattress store sells only king, queen and twin-size mattresses. Sales records at the store
indicate that one-fourth as many queen-size mattresses are sold as king and twin-size mattresses combined.
Records also indicate that three times as many king-size mattresses are sold as twin-size mattresses.
Calculate the probability that the next mattress sold is either king or queen-size.
A. 0.12

B. 0.15

C. 0.80

D. 0.85

E. 0.95

13. [SOA 146] A survey of 100 TV watchers revealed that over the last year:
(i) 34 watched CBS.
(ii) 15 watched NBC.
(iii) 10 watched ABC.
(iv) 7 watched CBS and NBC.
(v) 6 watched CBS and ABC.
(vi) 5 watched NBC and ABC.
(vii) 4 watched CBS, NBC, and ABC.
(viii) 18 watched HGTV and of these, none watched CBS, NBC, or ABC.
Calculate how many of the 100 TV watchers did not watch any of the four channels (CBS, NBC, ABC
or HGTV).
A. 1

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B. 37

C. 45

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D. 55

E. 82

A.1 Problems

14. There are three major newspapers in the city of Crobuzon: the Globe, the Herald, and the Phoenix.
The Phoenix is distributed freely, but the Globe and Herald cost money. On a recent day, sales of the
newspapers were as follows:
(i) 25% of people didnt read any newspaper
(ii) 25% of people read the Globe and 29% read the Herald
(iii) 40% of people read the Phoenix
(iv) 9% of people read both the Globe and the Herald
(v) 3% of people read all 3 papers
What percentage of people read the Phoenix and also read exactly one of the other two papers?
A. 0.03

B. 0.07

C. 0.10

D. 0.13

E. 0.16

15. If P[A] = 0.7 and P[B] = 0.6, what is the minimum possible value of P[A B]?
A. 0.3

B. 0.4

C. 0.5

D. 0.6

E. 0.7

16. If P[A] = 0.7 and P[B] = 0.6, what is the maximum possible value of P[A B]?
A. 0.3

B. 0.4

C. 0.5

D. 0.6

E. 0.7

17. A toy company manufactures three different types of toys: cars, trains, and spaceships. If the number of
cars that they make is twice the number of trains, and the number of spaceships is twice the number of
cars and trains combined, what is the probability that a randomly selected toy is a car?
A. 1/9

B. 1/7

C. 2/9

D. 2/7

E. 4/7

18. An integer is randomly chosen from {1, 2, 3, . . . , 25}. What is the probability that it is even or divisible
by 5, but not both?
A. 10/25

B. 12/25

C. 13/25

D. 15/25

E. 17/25

19. [SOA/CAS 1999 Practice Exam #1] A marketing survey indicates that 60% of the population owns an
automobile, 30% owns a house, and 20% owns both an automobile and a house.
Calculate the probability that a person chosen at random owns an automobile or a house, but not both.
A. 0.4

B. 0.5

C. 0.6

D. 0.7

E. 0.9

20. Suppose that A and B are mutually exclusive events, and C and D are also mutually exclusive events. If
P[A] + P[B] = .7, P[C] + P[D] = .6 and P[A B C D] = .9, what is the probability that exactly one
of the four events occurs?
A. 0.3
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B. 0.4

C. 0.5
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D. 0.8

E. 0.9
A.1 Problems

21. A high school offers language classes in French, German, Latin, and Spanish. Suppose that
(i) Twice as many students take Spanish as German, and twice as many take German as Latin.
(ii) The same number of students take French as who take German
(iii) French and German are taught at the same time, so no one takes both. Likewise, no one takes both
Latin and Spanish.
(iv) The number of students who only take German is twice as many as the number who only take Latin
(v) The number of students who take both Spanish and French is twice the number who take both
Latin and French.
(vi) The number who take both French and Latin is the same as the number who take both German
and Latin
(vii) The number who take both German and Spanish is the same as the total number who take Latin
If all 160 students at the school take a language class, what is the probability that a randomly selected
student studies more than one language?
A. 0.35

B. 0.44

C. 0.50

D. 0.56

E. 0.65

22. An insurance company offers four types of coverage: fire, tornado, flood, and earthquakes. What percentage of its policyholders have only tornado coverage if you are given the following:
(i) No policyholders have three or more types of coverage, and no one has both tornado and earthquake
coverage
(ii) 53% of the policyholders only have one type of coverage
(iii) Twice as many people have only fire insurance as have only tornado insurance
(iv) The same number of people have both flood and tornado insurance as have both flood and earthquake
insurance
(v) Twice as many people have both fire and tornado insurance as have both fire and earthquake
insurance
(vi) Twice as many people have flood only as have both fire and flood
(vii) 35% of the policyholders have fire insurance
(viii) 35% of the policyholders have earthquake insurance
(ix) 5% of the policyholders have both fire and flood insurance
A. 0.04

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B. 0.09

C. 0.15

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D. 0.16

E. 0.18

A.1 Problems

23. [Course 110; S90.23] Which of the following events is identical to (B C) (A0 B C 0 )?
(i) B (A0 C)
(ii) (A0 B) (B C)
(iii) (A0 C 0 ) (B C)
A. (i) and (ii) only
B. (i) and (iii) only
C. (ii) and (iii) only
D. all 3
E. None of these are identical

24. [Course 110; W96.23] Let A and B be events such that P(A) = 0.7 and P(B) = 0.9. Calculate the largest
possible value of P(A B) P(A B).
A. 0.20

B. 0.34

C. 0.40

D. 0.60

E. 1.60

25. Two fair dice are rolled. What is the probability that either the sum is 8 or that at least one of the dice
comes up a 6?
A. 9/36

B. 11/36

C. 14/36

D. 15/36

E. 16/36

C. 0.8

D. 0.9

E. 1.0

C. 0.2

D. 0.3

E. 0.4

26. Suppose that A, B, and C are events such that

(i) P[A] = 0.6, P[B] = 0.5 = P[C]
(ii) P[AB] = 0.3 = P[AC] but P[BC = 0.2]
(iii) P[ABC] = 0.1
Find P[A B C]
A. 0.6

B. 0.7

27. Suppose that A, B, and C are events such that

(i) P[A] = 0.6, P[B] = 0.5 = P[C]
(ii) P[AB] = 0.3 = P[AC] but P[BC = 0.2]
(iii) P[ABC] = 0.1
Find P[A0 B 0 C]
A. 0.0

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B. 0.1

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A.1 Problems