The complete question is;
Five people buy individual insurance policies. According to the research, the probability of each of these people not filing a claim for at least 5 years is 2/3.
The probability that all 5 have not filed a claim after 5 years is A: 0.132 B: 0.868 C: 1 , and the probability that exactly 3 will have filed a claim after 5 years is A: 0.016 B: 0.033 C: 0.067
Answer:
1) P(all 5 file no claim after 5 years) = 0.132
2) P(exactly 3 file claim after 5 years) = 0.033
Step-by-step explanation:
1) we are told that the probability of each of these people not filing a claim for at least 5 years is 2/3.
Thus, for all 5 of them,
The probability will be;
P(all 5 file no claim after 5 years) = (2/3)^5 = 0.1317 ≈ 0.132
2) since probability of each not filing a claim for last 5 years = 2/3
Then probability of each filing a claim after 5 years = 1 - 2/3 = 1/3
So, P(exactly 3 file claim after 5 years) = (1/3)^3 ≈ 0.037.
The closest answer is 0.033.
