Question

A manager of an insurance company goes through the data of insurance policies sold by insurance salesmen working under him. He finds that 90% of the people who purchase motor insurance are men. He wants to find that if 10 motor insurance owners are randomly selected, what would be the probability that exactly 6 of them are men?

Answer 1

Solution :

Given that ,

p = 0.90

1 - p = 1 -0.90 = 0.10  

n = 10

x = 6

Using binomial probability formula ,

P(X = x) = ((n! / (n - x)!) * p^x * (1 - p)^{n - x}

P(X = 6 ) =((10! / (10 - 6)!) * 0.90⁶ * 0.10^{10 -6}

= 0.0112

Probability = 0.0112