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Solve Real Problems

Apply your math skills to actuarial exam questions.

Actuaries earn professional credentials by passing a series of examinations. This online exam is designed to give you an idea of the types of questions you might encounter on the preliminary actuarial examinations administered by the Casualty Actuarial Society and Society of Actuaries. The sample problems are actual questions from prior exams, but they do not cover all the topics or all levels of difficulty.

Answer the five multiple choice questions below, then click submit to see your results.

1

A survey of a group's viewing habits over the last year revealed the following information:

  1. 28% watched gymnastics
  2. 29% watched baseball
  3. 19% watched soccer
  4. 14% watched gymnastics and baseball
  5. 12% watched baseball and soccer
  6. 10% watched gymnastics and soccer
  7. 8% watched all three sports.

Calculate the percentage of the group that watched none of the three sports during the last year.

2

An urn contains 10 balls: 4 red and 6 blue. A second urn contains 16 red balls and an unknown number of blue balls. A single ball is drawn from each urn. The probability that both balls are the same color is 0.44.

Calculate the number of blue balls in the second urn.

3

A company takes out an insurance policy to cover accidents that occur at its manufacturing plant. The probability that one or more accidents will occur during any given month is 3/5.

The number of accidents that occur in any given month is independent of the number of accidents that occur in all other months.

Calculate the probability that there will be at least four months in which no accidents occur before the fourth month in which at least one accident occurs.

4

Let X be a continuous random variable with density function

Calculate the expected value of X.

5
An insurance policy pays for a random loss X subject to a deductible of C, where 0 < C < 1. The loss amount is modeled as a continuous random variable with density function

Given a random loss X, the probability that the insurance payment is less than 0.5 is equal to 0.64 .

Calculate C.