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The Probability Function for the Number of Insurance Policies John

question 36

Essay

The probability function for the number of insurance policies John will sell to a customer is given by
f(X) = .5 - (X/6) for X = 0, 1, or 2
a.Is this a valid probability function? Explain your answer.
b.What is the probability that John will sell exactly 2 policies to a customer?
c.What is the probability that John will sell at least 2 policies to a customer?
d.What is the expected number of policies John will sell?
e.What is the variance of the number of policies John will sell?


Definitions:

Predictive Validity

The extent to which a score on a scale or test predicts future performance or behavior.

GRE Quantitative Scores

Scores from a standardized test section measuring mathematical reasoning, problem-solving skills, and understanding of basic concepts of arithmetic, algebra, geometry, and data analysis.

Test Bias

Refers to the presence of some characteristic of an item in the test that results in different outcomes for individuals belonging to different groups, not directly related to the characteristic being measured.

Performance Underestimate

A situation where an individual's actual performance is better than they had anticipated or predicted.

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