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You are given the following information about insurance on 100 policies. 0 The claims are all independent 0 For each policy, the probability of a
You are given the following information about insurance on 100 policies. 0 The claims are all independent 0 For each policy, the probability of a claim is 0.1 o If a claim occurs it will have amount 100 0 An insurer will pay the entire claim amount when they occur 0 The insurer charges a premium of 11 per policy Using the normal approximation, calculate the smallest number of policies that have to be sold so that the probability that the premiums will cover the claim payments is at least 'I>(1.645). Possible Answers
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