An insurance company pays out claims on its life insurance policies in accordance with a Poisson process having rate à = 2 per week. If the amount of money paid on each policy is uniformly distributed between GHS 1,000.00 and GHS 10,000.00, find the mean amount of money paid by the insurance company in a fine-week period.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 2GP
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An insurance company pays out claims on its life insurance policies in accordance with a
Poisson process having rate 1 = 2 per week. If the amount of money paid on each policy is
uniformly distributed between GHS 1,000.00 and GHS 10,000.00, find the mean amount of
money paid by the insurance company in a fine-week period.
Transcribed Image Text:An insurance company pays out claims on its life insurance policies in accordance with a Poisson process having rate 1 = 2 per week. If the amount of money paid on each policy is uniformly distributed between GHS 1,000.00 and GHS 10,000.00, find the mean amount of money paid by the insurance company in a fine-week period.
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