An insurance company issues 1250 vision care insurance policies. The number of claims filed by a policyholder under a vision care insurance policy during one year is has a distribution with mean = 2 and standard deviation = 1.41. Assume the numbers of claims filed by distinct policy holders are independent of one another. What is the approximate probability that there is a total of between 2450 and 2600 claims during a one-year period?
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This means that on average, a policyholder files 2 claims per year. Show more…
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An insurance company issues 1250 vision care insurance policies. The number of claims filed by a policyholder under a vision care insurance policy during one year is has a distribution with mean = 2 and standard deviation = 1.41. Assume the numbers of claims filed by distinct policy holders are independent of one another. What is the approximate probability that there is a total of between 2450 and 2600 claims during a one-year period? What do we know? What do we want to find? What do you expect the answer to be? How do I go from what I know to what I want to find out? Does this answer consistent with what was expected?
Derek F.
An insurance company issues 1200 health care insurance policies. The number of claims filed by a policyholder under the policy during one year is a Poisson random variable with mean 2. Assume the number of claims filed by different policyholders are mutually independent. What is the approximate probability that there is a total of between 2100 and 2400 claims during a one-year period?
Madhur L.
The insurance company issues 2500 insurance policies. The number of claims filed by a policyholder during a 1-year period is a Poisson random variable with mean 5. Assume that the numbers of claims filed by distinct policyholders are independent of one another. Can you use the CLT to approximate the probability that the total number of claims filed by a policyholder during a 1-year period is between 2450 and 2600, inclusive? Why Yes or why No? If yes, compute the probability.
Adi S.
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