Question

In a typical week, an insurance agent of XYZ Company presents life insurance plan to 18 potential customers. Historically 2 in 10 of such potential customers chose to buy life insurance plan from this agent. Find the following for the XYZ company.[Excel formulas must appear in your solution file] a) Prepare the probability distribution table in Excel for the insurance plan sign up in a week. b) What is the probability that no more than 12 customers sign up in a week? c) What is the probability that at least 6 customers sign up in a week? d) What is the probability that less than 8 customers sign up in a week e) What is the probability that more than 4 but less than 13 sign up in a week? f) How many customers are expected to sign up in a week? What is the standard deviation of the number customers signing up in a week?

Answer 1

Here we see that an insurance agent of XYZ Company presents life insurance plan to 18 potential customers so n=18, which is constant

Further 2 in 10 of such potential customers chose to buy life insurance plan from this agent so is same for all

Only two outcomes and events are independent

Hence all the properties of binomial distribution is satisfied

So we will use binomial distribution

x	P(x)=BINOMDIST(x,n,p,0)
0	0.0180
1	0.0811
2	0.1723
3	0.2297
4	0.2153
5	0.1507
6	0.0816
7	0.0350
8	0.0120
9	0.0033
10	0.0008
11	0.0001
12	0.0000
13	0.0000
14	0.0000
15	0.0000
16	0.0000
17	0.0000
18	0.0000

b.

c.

d.

e. (using table in a)

f.

g.