If Jesse wants to buy a $75,000 10-year term life insurance policy, and the annual premium rate (per $1000 of face value) for hi
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Answer:
{0.16807, 0.36015, 0.3087, 0.1323, 0.02835, 0.00243}
Step-by-step explanation:
The expansion of (p+q)^n for n = 5 is ...
(p+q)^5 = p^5 +5·p^4·q +10·p^3·q^2 +10·p^2·q^3 +5·p·q^4 +q^5
When the probability p=0.3 and q = 1-p = 0.7 the terms of this series correspond to the probabilities of 5, 4, 3, 2, 1, and 0 favorable outcomes out of 5 trials.
For example, p^5 = 0.3^5 = 0.00243 is the probability of 5 favorable outcomes in 5 trials where the probability of each favorable outcome is 0.3.
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The attachment shows the calculation of these numbers using a graphing calculator. It lists them in reverse order of the expansion of (p+q)^5 shown above, so that they are the probabilities of 0–5 favorable outcomes in the order 0–5.
