Find the indicated mean.
-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 0.9963. The company sells 1200 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 1200 women. Find the mean of the appropriate Poisson distribution (the mean number of deaths in a
Year in such groups of 1200 females). Round your answer to the nearest hundredth.
A) 0.44
B) 44.4
C) 4.44
D) 1195.56

Question

Quizplus · Accepted Answer

The mean of a Poisson distribution can be calculated using the formula λ=np, where n is the number of trials or individuals, and p is the probability of the event occurring in a single trial or individual. In this case, n=1200 and p=1-0.9963=0.0037 (since we want the probability of death, not survival). Therefore, the mean is λ=1200(0.0037)=4.44, which is closest to choice C.

Find the Indicated Mean