Life insurance salesman meets his prospective customers separately. At each meeting, he makes the same effort...

Life insurance salesman meets his prospective customers separately. At each meeting, he makes the same effort to persuade the prospective client to be insured. The vendor's understanding after a long term in the insurance business is that the probability of persuading the customer to be insured (probability of success) is 0,1. What is the probability in 4 trials to insure one of them?

Expert Solution

Probability of success (P)= 0.1

Sample size (n) = 4

Number of successes = 1

formula for binomial distribution is

P(X) = nCx * p^x * (1 - p)^n-x

P(X=1) = 4C1 * 0.1¹ * (1 - 0.1)4-1

P(X=1) = 0.2916

probability in 4 trials to insure one of them = 0.2916

orchestra answered 2 years ago

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Life insurance salesman meets his prospective customers separately. At each meeting, he makes the same effort...

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