(adsbygoogle = window.adsbygoogle || []).push({}); 1. The problem statement, all variables and given/known data

An insurer uses the Poisson distribution with mean 4 as the model for the number

of warranty claims per month on a particular product. Each warranty claim results

in a payment of 2 by the insurer. Find the probability that the total payment by

the insurer in a given month is less than two standard deviations above the average

monthly payment.

2. Relevant equations

3. The attempt at a solution

So, mean = 4

Standard deviation = 2

x=2

Will I use the density function to solve this?

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# Homework Help: Poisson distribution for insurance

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