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In: Statistics and Probability

An automobile insurance company predicts that 15% of policy holders file a claim within the next...

An automobile insurance company predicts that 15% of policy holders file a claim within the next (8pt) year. Since this company has many policy holders, we may assume that filing a claim is
independent between policy holders.
a. If 15 policy holders are randomly selected, what is the probability that exactly two will
file a claim within the next year? What calculator command and inputs did you use?

Solutions

Expert Solution

n = 15

p = 0.15

Probability (exactly two will file a claim within the next year) = 0.2856

The calculator formula for Ti83/84 is:

binomialpdf(15,0.15,2)

orchestra answered 2 years ago
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