Statistic Question 2

  QUESTION TWO

An insurance company takes a keen interest in the age at which a person is insured. Consequently a survey conducted on prospective clients indicated that for clients having the same age the probability that they will be alive in 30 years’ time (2) ⁄3. This probability was established using the actuarial tables. If a sample of 5 people was insured now, find the probability of having the following possible outcomes in 30 years

a)      All are alive

b)      At least 3 are alive

c)      At most one is alive

d)      None is alive

e)      At least 1 is alive

f)       Differentiate between Poisson and binomial probability distribution

Elaborate the properties of the normal distribution