Sweetwater & Associates write weekend trip insurance at a very nominal charge. Records show that the probability that a motorist will have an accident during the weekend and file a claim is 0.00555. Suppose they wrote 900 policies for the coming weekend, how many claims could they expect to be filed?
A) We have been given insufficient information to make such a prediction.
B) Sweetwater & Associates would normally expect to have 18 claims filed.
C) Sweetwater & Associates would normally expect to have 2 claims filed.
D) Sweetwater & Associates would be surprised to have five claims filed.
Correct Answer:
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