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Two health insurance compete for the business of 1000 customers. Assume that each customer chooses between the insurance providers independently and with indifference. It
Two health insurance compete for the business of 1000 customers. Assume that each customer chooses between the insurance providers independently and with "indifference". It is also assumed that each company is capable of providing high quality service for at most N customers. Part a (5 points): Using a binomial model, find an expression for N that will guarantee that the probability of turning away a customer (because of the limited capability of the company) is less than 1% Part b (5 points): Use the normal approximation to get a numerical value for N.
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