Q5. (6 points) Assume an employee in a life insurance company is processing claims daily. To help ensure the processing

[answerhappygod]

Q5 6 Points Assume An Employee In A Life Insurance Company Is Processing Claims Daily To Help Ensure The Processing 1 (42.59 KiB) Viewed 14 times

Q5. (6 points) Assume an employee in a life insurance company is processing claims daily. To help ensure the processing is efficient, claim arrivals are modelled via a Poisson distribution. Specifically, in day i, there are Nday, claims, where Nday,i~Poisson (2). Assume each day i is independent of the next and follows the same distribution. a) Derive the probability that at least one claim is processed in a day. b) Derive the probability that in a week (7 days), no claim is processed. c) Assuming λ = 50, calculate the 3-standard deviation confidence interval for a given week (7 days) via the following formula: [max (floor (E[Nweek]-3√/Var (Nweek)), 0), ceiling (E[Nweek] + 3√Var(Nweek))] Note: floor (x) = [x] = integer part of x (e.g.,floor(1.8) = 1). ceiling (x) = [x] = integer part of x + 1 (e. g., ceiling (1.1) = 2).