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mpany chaiges $227 Iul a $30,C ice policy 1or a 30-year the year is 0.9969. Assume that the company sells 800 such policies to 50-year-old females, so it collects $181,600 in policy payments. The company will make a profit if fewer than four of the 800 women die during the year. a. What is the mean number of deaths in such groups of 800 females? b. Using a Poisson distribution, find the probability that the company makes a profit from the 800 policies. Is that probability high enough so tha the company is almost sure to make a profit? a. The mean number of deaths is. (Type an integer or a decimal.)

mpany chaiges $227 Iul a $30,C ice policy 1or a 30-year the year is 0.9969. Assume that the company sells 800 such policies to 50-year-old females, so it collects $181,600 in policy payments. The company will make a profit if fewer than four of the 800 women die during the year. a. What is the mean number of deaths in such groups of 800 females? b. Using a Poisson distribution, find the probability that the company makes a profit from the 800 policies. Is that probability high enough so tha the company is almost sure to make a profit? a. The mean number of deaths is. (Type an integer or a decimal.)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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An insurance company charges $227 for a $50,000 life insurance policy for a 50-year-old female. The probability that such a female survives the year is 0.9969. Assume that the company sells 800 such policies to 50-year-old females, so it collects $181,600 in policy payments. The company will make a profit if fewer than four of the 800 women die during the year. a. What is the mean number of deaths in such groups of 800 females? b. Using a Poisson distribution, find the probability that the company makes a profit from the 800 policies. Is that probability high enough so that the company is almost sure to make a profit? a. The mean number of deaths is. (Type an integer or a decimal.)
Transcribed Image Text:An insurance company charges $227 for a $50,000 life insurance policy for a 50-year-old female. The probability that such a female survives the year is 0.9969. Assume that the company sells 800 such policies to 50-year-old females, so it collects $181,600 in policy payments. The company will make a profit if fewer than four of the 800 women die during the year. a. What is the mean number of deaths in such groups of 800 females? b. Using a Poisson distribution, find the probability that the company makes a profit from the 800 policies. Is that probability high enough so that the company is almost sure to make a profit? a. The mean number of deaths is. (Type an integer or a decimal.)
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