The Probability Function for the Number of Insurance Policies John

question 139

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?

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Definitions:

Financial Capitalism

An economic system where financial markets play a critical role in determining the allocation of capital, the pricing of assets, and the management of economic risks.

Industrial Capitalism

An economic and social system in which trade, industry, and capital are privately controlled and operated for profit.

Fossil-fuel

Natural fuels such as coal, oil, and natural gas, derived from the remains of living organisms and used primarily for energy.

Industrial Order

A social and economic system characterized by the large-scale industrial production and management of goods and services, often associated with the rise of factories and mechanization.