An auditor for Health Maintenance Services of Georgia

Chapter 6, Problem 39E

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QUESTION:

Problem 39E

An auditor for Health Maintenance Services of Georgia reports 40 percent of policyholders 55 years or older submit a claim during the year. Fifteen policyholders are randomly selected for company records.

a. How many of the policyholders would you expect to have filed a claim within the last year?

b. What is the probability that 10 of the selected policyholders submitted a claim last year?

c. What is the probability that 10 or more of the selected policyholders submitted a claim last year?

d. What is the probability that more than 10 of the selected policyholders submitted a claim last year?

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QUESTION:

Problem 39E

An auditor for Health Maintenance Services of Georgia reports 40 percent of policyholders 55 years or older submit a claim during the year. Fifteen policyholders are randomly selected for company records.

a. How many of the policyholders would you expect to have filed a claim within the last year?

b. What is the probability that 10 of the selected policyholders submitted a claim last year?

c. What is the probability that 10 or more of the selected policyholders submitted a claim last year?

d. What is the probability that more than 10 of the selected policyholders submitted a claim last year?

ANSWER:

Solution:

Step 1 of 4:

Here 40 percent of policyholders 55 years or older submit a claim during the year.

15 policyholders are randomly selected for company records.

  1. We have to find the expected number of policyholders who filed a claim within the last year.
  2. We have to find the probability that 10 of the selected policyholders submitted a claim last year.
  3. We have to find the probability that 10 or more of the selected policyholders submitted a claim last year.
  4. We have to find the probability that more than 10 of the selected policyholders submitted a claim last year.

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