A newly formed life insurance company has underwritten term policies on 120 women between the ages of forty and forty-four. Suppose that each woman has a 1/150 probability of dying during the next calendar year, and that each death requires the company to pay out $50,000 in benefits. Approximate the probability that the company will have to pay at least $150,000 in benefits next year.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A newly formed life insurance company has underwritten term policies on 120 women between the ages of forty and forty-four. Suppose that each woman has a 1/150
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