Help please I’ll give extra points
1 answer:
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Answer:
Step-by-step explanation:
1) Previous concepts
The binomial distribution is a "DISCRETE probability distribution that summarizes the probability that a value will take one of two independent values under a given set of parameters. The assumptions for the binomial distribution are that there is only one outcome for each trial, each trial has the same probability of success, and each trial is mutually exclusive, or independent of each other".
2) Solution to the problem
The probability in favor of the regulation based on the recent survey is:
Let X the random variable of interest "Number of favor respondents about the regulation", on this case we now that:
The probability mass function for the Binomial distribution is given as:
Where (nCx) means combinatory and it's given by this formula:
And we want to find this probability:
If we use X= "Number of respondednts opposed to the regulation we got the same answer", but on this case p = 1-0.68=0.32, and we want this probability:
Premium rates are usually for premium per fixed face value. Jade's annual premium for a 10 year policy is given by Option b: $1,202
<h3>How to calculate the total annual premium for $x ?</h3>If its given that the annual premium is $p per $y face value, then we can calculate the annual premium for $1 face value and then use it to calculate annual premium for $x.
Using proportions, we get:
For given case, from the tables, we see that for age 34, and 10 year life insurance for female gender , there is annual premium of 6.01 per $1000 face value.
Thus, we have p = 6.01, y = 1000
Since Jade wants to buy Life insurance for $200,000, thus, x = $200,000
Putting it in the above derived formula, we get:
Thus, Jade's annual premium for a 10 year policy is given by Option b: $1,202
Learn more about calculating annual premium cost here: