Homework Help is Here – Start Your Trial Now!
Math
Probability
A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth birthday will not live to his sixty-first birthday is 0.06. On visiting a holiday resort for seniors, he sells 8 policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the insured, and pays a fixed sum on death. All 8 policies can be assumed to be mutually independent. Provide answers to the following to 3 decimal places. Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? 48 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? .4512 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61? .038

A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth birthday will not live to his sixty-first birthday is 0.06. On visiting a holiday resort for seniors, he sells 8 policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the insured, and pays a fixed sum on death. All 8 policies can be assumed to be mutually independent. Provide answers to the following to 3 decimal places. Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? 48 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? .4512 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61? .038

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
See similar textbooks
icon
Related questions
Topic Video
Question
I cannot figure out part c, please show me how
A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth birthday will not live to his sixty-first birthday is 0.06. On visiting a holiday resort for seniors, he sells 8 policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the insured, and pays a fixed sum on death. All 8 policies can be assumed to be mutually independent. Provide answers to the following to 3 decimal places. Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? .48 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? .4512 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61? .038
Transcribed Image Text:A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth birthday will not live to his sixty-first birthday is 0.06. On visiting a holiday resort for seniors, he sells 8 policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the insured, and pays a fixed sum on death. All 8 policies can be assumed to be mutually independent. Provide answers to the following to 3 decimal places. Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? .48 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? .4512 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61? .038
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer