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5. An insurance company has a portfolio of 10,000 policies. Based on past data the company estimates that the probability of a claim on anyr

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5. An insurance company has a portfolio of 10,000 policies. Based on past data the company estimates that the probability of a claim on anyr one policy in a year is 0.003. It assumes no policy will generate more than one claim in a year. (a) Determine the approximate probability of more than 40 claims from the portfolio of10,000 policies in a year. [4) (b) Determine an approximate equal-tailed interval into which the number of claims

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