Question 215583: An insurance company has discovered that only about 0.1% of the population is involved in a certain type of accident each year. If its 10000 policy holders were randomly selected from the population, what is the probability that not more than 5 of its clients are involved in such an accident next year?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! An insurance company has discovered that only about 0.1% of the population is involved in a certain type of accident each year. If its 10000 policy holders were randomly selected from the population, what is the probability that not more than 5 of its clients are involved in such an accident next year?
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That is a binomial problem with n=10,000, p= 0.001, and 0<=x<=5.
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I used a TI calculator to get binomcdf(10,000,0.001,5) = 0.06699...
Cheers,
Stan H.
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