Policy holders of an insurance company file claims at an average rate of 0.39 per year. If the company pays $7,500 for each claim, (a) What is the probability that 4 people file claims? ((b) Find the probability that no person files claim? © What is the mean claim amount for a policy holder in a 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.
- Policy holders of an insurance company file claims at an average rate of 0.39 per year. If the company pays $7,500 for each claim,
(a) What is the probability that 4 people file claims?
((b) Find the probability that no person files claim?
© What is the mean claim amount for a policy holder in a year?
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