Suppose a health insurance company can resolve 60% of claims using a computerised system, the remaining needing work by humans. On a particular day, 10 claims arrived, assuming claims are independent, what is the probability that: Q2.1) Either 3 or 4 (inclusive) claims require work by a human? Q2.2) No more than 9 claims require work by a human?

Gavyn Whitehead

Gavyn Whitehead

Answered question

2022-09-12

Suppose a health insurance company can resolve 60% of claims using a computerised system, the remaining needing work by humans. On a particular day, 10 claims arrived, assuming claims are independent, what is the probability that:
Q2.1) Either 3 or 4 (inclusive) claims require work by a human?
Q2.2) No more than 9 claims require work by a human?
I have identified that:
n = 10 , p = 0.6 , q = 0.4
How would I go about these questions? Any help would be appreciated!

Answer & Explanation

Annie Wells

Annie Wells

Beginner2022-09-13Added 17 answers

Step 1
For 2.1, we can separately compute 3 or 4 claims needing human intervention.
For 3 claims, we have ( 10 3 ) ( 0.6 ) 7 ( 0.4 ) 3 , and for 4 claims, we have ( 10 4 ) ( 0.6 ) 6 ( 0.4 ) 4 . We simply add these probabilities up.
Step 2
For 2.2, rather than adding up everything from 0 to 9, we can just compute 10, and do 1−that probability. For 10, we have ( 0.4 ) 10 .

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