Y = tan 0A 9An insurance company pays out claims on its life insurance policies in accordance with aPoisson process having rate A = 2 per week. If the amount of money paid on each policy isuniformly distributed between GHS 1,000.00 and GHS 10,000.00, find the mean amount ofmoney paid by the insurance company in a fine-week period.

The average rate is given as , 2 per week. λ=2. The amount of money paid on each policy is uniformly…

Answered: An insurance company pays out el…

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Probability

An insurance company pays out el Poisson process having rate à = 2

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...

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Concept explainers

Continuous Probability Distributions

Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.

Normal Distribution

Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!

Question

Y = tan 0
A 9
An insurance company pays out claims on its life insurance policies in accordance with a
Poisson process having rate A = 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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