an insurance company found that 35% of all insurance policies are terminated before their maturity date. Assume that ten polices are randomly selected from the company`s policy database. out of the ten randomly selected policies. what is the probability that at least eight will not be terminated. what is the probability that more than three but less than seven policies will be terminated
Answers
Answer:
Given: An insurance company found that 25% of all Insurance policies are terminated before their maturity date. 15 policies are randomly selected from the company's policy database.
To find: probability that more than 8 but less than 11 policies are terminated before maturing
Solution:
An insurance company found that 25% of all insurance policies are terminated before their maturity date
=> Probability of policy Termination p = 25/100 = 1/4
Probability of policy not Terminating = 1 - 1/4 = 3/4
15 policies are randomly selected => n = 15
p(x) = nC^xp^xq^n-x
probability that more than 8 but less than 11 policies are terminated before maturing
=> x = 9, 10
=> probability = p(9) + p(10)
= ¹⁵C₉(1/4)⁹(3/4)⁶ + ¹⁵C₁₀(1/4)¹⁰(3/4)⁵
= ( 3⁵ / 4¹⁵) ( 5005 * 3 + 3003 )
= ( 3⁵ / 4¹⁵) ( 18018 )
= 0.0041
= 0.41 % is the probability that more than 8 but less than 11 policies are terminated before maturing
probability that at least 14 is terminated before maturity
= 1 - 15 terminated before maturity
= 1 - ¹⁵C₁₅(1/4)¹⁵(3/4)⁰
= 1 - 0.0000000009
∴ The Probability that more than three but less than Seven Policies will be terminated as 1%.
Answer:
Sorry Bro I don't know but Correct