Question 2

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 about X, the number of customers who will buy life insurance from this

agent in the coming month:

a) (5 points) What is the probability that X is exactly 5?

2

OPRE 3360- Managerial Methods in Decision Making Under Uncertainty

b) (5 points) What is the probability that X is no more than 10?

c) (5 points) What is the probability that X is at least 20?

d) (5 points) Determine the mean and standard deviation of X.

Homework 2