Question

statistitcs An insurance company in the town of Codrington sells life insurance. They are determining the premium for a $100,000 life insurance for a 50-year old woman. The probability that a 50-year old woman in Codrington survives the year is 0.846. The company sells 1,174 such policies to 50-year old females. The company will use the Poisson distribution to approximate the probability of various number of deaths during the year in this group of 1,174 women. Find the mean of the appropriate Poisson distribution (the mean number of deaths in a year in such groups of 1,174 females).

Answer 1

The answer is "180.796"

Explanation:

Due to X, Poisson is indeed a medium np distribution,

Due to the mean death number n=1,174

Survival risk = 0.846

Death chance
`= 1-0.846`

`=0.154`

`\to Mean= n * p`

`= 1147 * 0.154\\\\= 180.796`