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Probabilities of Life Insurance Purchase

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In a typical month, an insurance agent presents life insurance plans to 40 potential customers. Historically, one in four such customers chooses to buy life insurance from this agent. Based on the relevant binomial distribution, answer the following questions;
a) What is the probability that exactly 5 customers will buy life insurance from this agent in the coming month?

b)What is the probability that no more than 10 customers will buy life insurance from this agent in the coming month?

c)What is the probability that at least 20 customers will buy life insurance from this agent in the coming month?

Please use the attached Excel sheet to assist and use the BINOMDIST function in the Excel.

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In a typical month, an insurance agent presents life insurance plans to 40 potential customers. Historically, one in four such customers chooses to buy life insurance from this agent. Based on the relevant binomial distribution, answer the following questions;
a) What is ...

Solution Summary

This solution computes the probability of a specified number of customers purchasing life insurance in the coming month in 3 different scenarios.

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