Suppose that in one year the number of industrial accidents X follows a Poisson distribution with mean
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Question:
Suppose that in one year the number of industrial accidents X follows a Poisson distribution with mean 3.0. If each accident leads to an insurance claim of $5,000, how much money would an insurance company need to keep in reserve to be 95 % certain that the claims are covered?
Please use Tables of the Poisson distribution and/or R to compute the numerical solutions.
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