A life insurance company has determined that each week an average of 9 claims are filed in its Denver branch. What is the probability that exactly 5 claims will be filed during the next week?

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Answer:

6.07% probability that exactly 5 claims will be filed during the next week.

Step-by-step explanation:

In a Poisson distribution, the probability that X represents the number of successes of a random variable is given by the following formula:

[tex]P(X = x) = \frac{e^{-\mu}*\mu^{x}}{(x)!}[/tex]

In which

x is the number of sucesses

e = 2.71828 is the Euler number

[tex]\mu[/tex] is the mean in the given interval.

An average of 9 claims are filed in its Denver branch.

So [tex]\mu = 9[/tex]

What is the probability that exactly 5 claims will be filed during the next week?

This is [tex]P(X = 5)[/tex].

[tex]P(X = x) = \frac{e^{-\mu}*\mu^{x}}{(x)!}[/tex]

[tex]P(X = 5) = \frac{e^{-9}*(9)^{5}}{(5)!} = 0.0607[/tex]

6.07% probability that exactly 5 claims will be filed during the next week.