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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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Need some help writing a paper...on how the below game should be set up, played and solved...

a consumer decide whether to buy life insurance or not. To keep the game relatively simple, assume the life insurance being considered is term life, i.e. insurance without an accumulating investment value.
Keep in mind that your paper is going to be read by people without prior knowledge of game theory.

Remember to cite any outside references used.

Hint: The most common set-up for this game is to have a potential insurance buyer playing against 'Mother Nature'.

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