There is a 0.9986 probability a randomly selected 30-year old male live through the year. An insurance company called, None-of-your-Business, charges $161 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit. Assume that the company sells 1300 such policies to 30-year-old males, so it collects $209,300 in policy payments. The company will make a profit if the number of deaths in this group is two or fewer.
a. What is the mean number of deaths in such groups of 1300 males?
b. Use the Poisson distribution to find the probability that the company make a profit from the 1300 policies.
c. Use the binomial distribution to find the probability that the company makes a profit from the 1300 policies. Compare this result to that from part b.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more