An insurance company holds fraud insurance policies on 6,000 firms. In any given year the probability that any single policy will result in a claim is 0.001. Find the probability that at least 3 claims are made in a given year. Use the Poisson approximation to the binomial distribution.

An insurance company holds fraud insurance policies on 6,000 firms. In any given year the probability that any single policy will result in a claim is 0.001. Find the probability that at least 3 claims are made in a given year. Use the Poisson approximation to the binomial distribution.

Name: An insurance company holds fraud insurance policies on 6,000 firms. In
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: An insurance company holds fraud insurance policies on 6,000 firms. In any given year the probability that any single policy will result in a claim is 0.001. Find the probability that at least 3 claims are made in a given year. Use the Poisson approx

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

Similar questions

In a recent year, a hospital had 4142 births. Find the mean number of births per day, then use that result and the Poisson distribution to find the probability that in a day, there are 13 births. Does it appear likely that on any given day, there will be exactly 13 births?
A bakery produces an average of 50 loaves of bread per day. The number of loaves produced by the bakery follows a Poisson distribution. What is the probability that the bakery will sell at least two loaves of bread in a day? Explain each step along with the computation.
A sample of a radioactive material is studied in a lab. There are 741 gamma ray emissions over 130 seconds. Use the Poisson distribution to find the probability that 1 or fewer gamma rays are emitted in a given second. Do not round intermediate computations, and round your answer to three decimal places. (If necessary, consult a list of formulas.) ?
As a manager of an organization, what probability distribution from this week binomial/poisson would you use if you wanted to estimate your annual employee turnover? My company has 550 employees and we lose 15 employees every 2 months.
In a busy highway on the average 5 accidents happen per week. What is the probability that there will be no accidents next week? Assume that the number of accidents has a Poisson distribution.
Suppose we have a bucket of 20 balls with 10 red and 10 green. We take 5 draws and after each draw, we remove the chosen ball from the bucket before our next draw (this is called drawing without replacement). Can we use the binomial distribution to model this scenario? Why or why not?
Assume that when human resource managers are randomly selected, 54% say job applicants should follow up within two weeks. If 7 human resource managers are randomly selected, find the probability that at least 4 of them say job applicants should follow up within two weeks. The probability is. (Round to four decimal places as needed.)
A shipment of 10 similar microcomputers to a retail outlet contains 4 that are defective. If a school makes a random purchase of 3 of these computers, find the probability distribution for the number of defectives.
In a recent year, an author wrote178checks. Use the Poisson distribution to find the probability that, on a randomly selected day, he wrote at least one check what is the probability SHARE