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A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth birthday will not live to his sixty-first birthday is 0.06. On visiting a holiday resort for seniors, he sells 8 policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the insured, and pays a fixed sum on death. All 8 policies can be assumed to be mutually independent. Provide answers to the following to 3 decimal places. Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? 48 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? .4512 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61? .038

A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth birthday will not live to his sixty-first birthday is 0.06. On visiting a holiday resort for seniors, he sells 8 policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the insured, and pays a fixed sum on death. All 8 policies can be assumed to be mutually independent. Provide answers to the following to 3 decimal places. Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? 48 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? .4512 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61? .038

Elements Of Modern Algebra
Elements Of Modern Algebra
8th Edition
ISBN:9781285463230
Author:Gilbert, Linda, Jimmie
Publisher:Gilbert, Linda, Jimmie
Chapter2: The Integers
Section2.7: Introduction To Coding Theory (optional)
Problem 7E
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I cannot figure out part c, please show me how
A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth birthday will not live to his sixty-first birthday is 0.06. On visiting a holiday resort for seniors, he sells 8 policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the insured, and pays a fixed sum on death. All 8 policies can be assumed to be mutually independent. Provide answers to the following to 3 decimal places. Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? .48 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? .4512 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61? .038
Transcribed Image Text:A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth birthday will not live to his sixty-first birthday is 0.06. On visiting a holiday resort for seniors, he sells 8 policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the insured, and pays a fixed sum on death. All 8 policies can be assumed to be mutually independent. Provide answers to the following to 3 decimal places. Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? .48 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? .4512 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61? .038
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