An agent sells life insurance policies to five equally aged,

babeeb0oL

babeeb0oL

Answered question

2021-09-29

An agent sells life insurance policies to five equally aged, healthy people.
According to recent date, the probability that a person lives in these conditions for 30 years or more is 35. Then the probability that after 30 years exactly two people are still living is:

Answer & Explanation

ensojadasH

ensojadasH

Skilled2021-09-30Added 100 answers

Step 1
Given :
Probability that a peon lives in these condition 30 years or more =35=0.6
Sample size , n=5 equally aged people
Let X denotes the number of people still living after 30 years
X represents the Binomial random variable
Step 2
We need to compute a binomial distribution probability. The following information are provided:
Population Probability of Success (p)=0.6Sample Size (n) =5Probability Event = exactly 2 people still living after 30 yearsPr(X3)
the binomial probability formula:
P(X)=(nX)pX(1p)nX
This implies that
Pr(X=2)=(52)0.62×0.452
=0.2304
which means that the probability we are looking for is Pr(X=2)=0.2304
P (exactly 2 people still living after 30 years ) =0.2304

Do you have a similar question?

Recalculate according to your conditions!

New Questions in High school probability

Ask your question.
Get an expert answer.

Let our experts help you. Answer in as fast as 15 minutes.

Didn't find what you were looking for?