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Binomial Probability: Number of Accident Claims

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Accident claims are checked for completeness by branch offices of Fortune Insurance before they are sent to a regional office for payment. Historically 80% of the claimes are complete whenthey reach the regional office. You select a random sample of 20 claimes that have arrived at the regional office. Find the probability of that:
A. At least 16 claims are complete
B. All 20 are complete
C. Fewer than 12 are complete
D. Exactly 12 are complete

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Solution Summary

The solution provides step by step method for the calculation of binomial probabilities. Formula for the calculation and Interpretations of the results are also included.

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Accident claims are checked for completeness by branch offices of Fortune Insurance before they are sent to a regional office for payment. Historically 80% of the claims are complete when they reach the regional office. You select a random sample of 20 claims that have arrived at the regional office. Find the probability of that:
Answer
Let X be the number of complete claims. Clearly X is binomial ...

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