MATH 216 – Introduction to Statistics: Technology Assignment #325 Points

OverviewThis lab is designed to introduce the student to the various probability models that Excel is capable of computing without the use of formulas learned in class or without the use of statistical tables. The three probability models focused upon are:

- The Binomial Probability Model- The Poisson Probability Model- The Normal Probability Model

Part AAn insurance company estimates that each day they sell 45 policies. Using a Poisson distribution, answer the following:

a. What is the probability that the company will sell exactly 48 policies in a day?b. What is the probability that the company will sell less than 35 policies in a

day?c. What is the probability that the company will sell more than 51 policies in a

day?d. What is the probability that the company will sell between 40 and 55 policies

in a day?

Part BThe same insurance company estimates that the probability of selling a policy to a customer is 5%. The company calls 29 customers. Using the Binomial distribution, answer the following:

a. What is the probability that of the 29 customers the company sells 1 policy?b. What is the probability that the company sells less than 3 policies?c. What is the probability that the company sells more than 5 policies?\

Part CThe insurance company estimates that the average payout for a claim is $2,250 with a population standard deviation of $1000. Assume that the data is normally distributed and answer the following:

a. What is the probability that the company will pay a claim that is less that $1,500?

b. What is the probability that the company will pay a claim that is more than $4,000?

c. What is the probability that the company will pay a claim that is valued between $5,000 and $6,500?

Expectations

- Solutions are to be described in complete sentences- All answers/descriptions are to by typed on the same spreadsheet neatly and in order- If you e-mail this assignment you must format it to fit on one page and include your name, course name/description, and date in the upper left-hand corner.

Helpful Formulas- : Uses the Poisson Distribution to compute the probability of

exactly x occurrences with a mean of

- : Uses the Poisson Distribution to compute the probability of x or less occurrences with a mean of

- Uses the Binomial Distribution to compute the probability of exactly x occurrences in n trials with a population proportion equal to p.

- Uses the Binomial Distribution to compute the probability of x or less occurrences in n trials with a population proportion equal to p.

- Uses the Normal Distribution to compute the probability of x or less occurrences with a population mean of

and a population standard deviation of