Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? 0.5 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? 0.475 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61?
Part a) What is the expected number of policies that will pay out before the insured parties have reached age 61? 0.5 Part b) What is the variance of the number of policies that will pay out before the insured parties have reached age 61? 0.475 Part c) What is the probability that at least two policies will pay out before the insured parties have reached age 61?
Chapter8: Sequences, Series,and Probability
Section: Chapter Questions
Problem 41CT: On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form...
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Question
![A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth
birthday will not live to his sixty-first birthday is 0.05. On visiting a holiday resort for seniors, he sells 10
policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the
insured, and pays a fixed sum on death. All 10 policies can be assumed to be mutually independent. Provide
answers to the following to 3 decimal places.
Part a)
What is the expected number of policies that will pay out before the insured parties have reached age 61?
0.5
Part b)
What is the variance of the number of policies that will pay out before the insured parties have reached age
61?
0.475
Part c)
What is the probability that at least two policies will pay out before the insured parties have reached age 61?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a05008c-2328-4042-a55b-5662c580eb7b%2F5ac579fe-bae8-456e-ad16-ca34db58d4e6%2Fpujb3n8_processed.png&w=3840&q=75)
Transcribed Image Text:A life insurance salesman operates on the premise that the probability that a man reaching his sixtieth
birthday will not live to his sixty-first birthday is 0.05. On visiting a holiday resort for seniors, he sells 10
policies to men approaching their sixtieth birthdays. Each policy comes into effect on the birthday of the
insured, and pays a fixed sum on death. All 10 policies can be assumed to be mutually independent. Provide
answers to the following to 3 decimal places.
Part a)
What is the expected number of policies that will pay out before the insured parties have reached age 61?
0.5
Part b)
What is the variance of the number of policies that will pay out before the insured parties have reached age
61?
0.475
Part c)
What is the probability that at least two policies will pay out before the insured parties have reached age 61?
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