Imagine that an insurance company claims 7 policies on average per month. Calculate the probability that...

Imagine that an insurance company claims 7 policies on average per month. Calculate the probability that no policy will be claimed in a week

Expert Solution

Solution :

Given that ,

mean = = 7

Using Poisson probability formula,

P(X = x) = (e^- * ^x ) / x!

P(X = 0) = (e^-7 * 7³⁾ / 0! = 0.0009

Probability = 0.0009

orchestra answered 2 years ago

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