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Car accidents at King University occur according to the conditions of a Poisson process, with an average of 2 accidents per week. 75% of accidents...
Car accidents at King & University occur according to the conditions of a Poisson process, with an average of 2 accidents per week. 75% of accidents result in an insurance claim.
a) List all the conditions required for a Poisson process. Do you think they would hold for this situation in real life?
b) An accident has just occurred. What is the probability the next accident will be more than 4 days from now?
c) In a one-month period (4 weeks), what is the probability that there are no more than 2 insurance claims?
d) Given that a particular month (4 weeks) had 3 insurance claims, what is the expected number of accidents that occurred?
e) Suppose you know that 20 accidents occurred in a 12-week period. Find the distribution (pf and range) of the number of insurance claims in the first 4 weeks.
f) Each insurance claim payment is independent and has an unknown distribution with a mean of $2000 and a standard deviation of $500. Find the mean and standard deviation of the total amount of insurance claims payments in one year (52 weeks).
Car accidents at King & University occur according to the conditions of a Poisson process,with an average of 2 accidents per week. 75% of accidents result in an insurance claim.a) List all...