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.)
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 4ECP: Show that the probability of drawing a club at random from a standard deck of 52 playing cards is...
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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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