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PHTAT 175 Problem 6. An Insurance company assumes that the claim probability for smokers is 0.1, while for nonsmokers it is 0,07. A group of
PHTAT 175 Problem 6. An Insurance company assumes that the claim probability for smokers is 0.1, while for nonsmokers it is 0,07. A group of mutually independent lives hes coverage of 800 per life. The company assumes that 27% of the lives are smokers. Based on this assumption, the premium is set equal to 120% of expected claims. If 23% of the lives are smokers, the probability that claims will exceed the premium is less than 0.05. Using the normal approximation, determine the minimum number of lives that must be in the group
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