Question
An insurance company found that 25% of all insurance policies are terminated before their maturity date. Assume that 10 polices are randomly selected from the
An insurance company found that 25% of all insurance policies are terminated before their maturity date. Assume that 10 polices are randomly selected from the company's policy database. Out of the 10 randomly selected policies;
a) What is the expected number of policies to be terminated before maturing? [1]
b) What is the standard deviation for the number of policies terminated before
maturity? [1]
c) What is the probability that no policy will be terminated before maturity? [1]
d) What is the probability that all policies will be terminated before maturing? [2]
e) What is the probability that at least two policies will be terminated? [3]
f) What is the probability that more than 5 but less than eight policies will be
terminated? [3]
g) What is the probability that at most eight policies will be terminated? [3]
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h) What is the probability that eleven policies will be terminated? [1]
i) What is the probability that two policies will not be terminated? [3]
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