# probability

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Brain cancer is a rare disease. In any year there are about 3.1 cases per 100000 od population. Suppose a small medical insurance company has 150000 people on its books. How many claims stemming from brain cancer should the company expect in any year?

What is the probability of getting more than 6 claims related to brain cancer in a year?

Â© BrainMass Inc. brainmass.com December 24, 2021, 4:49 pm ad1c9bdddfhttps://brainmass.com/statistics/probability/probability-brain-cancer-claims-9567

## SOLUTION This solution is **FREE** courtesy of BrainMass!

Prob of having brain cancer = .0031 ( 3.1%)

Number of people on books = 150,000

So expected No# = .0031*150,000 = 465 cases.

Assuming Poisson Distbn : Mean = 465

So Prob (>6) = 1- p(<=6). If we calculate p(<6) is 1.6E^-189 which is 0 fr all practical purposes.

So Prob(>6) = 1.

Hope it is clear.

Â© BrainMass Inc. brainmass.com December 24, 2021, 4:49 pm ad1c9bdddf>https://brainmass.com/statistics/probability/probability-brain-cancer-claims-9567