An insurance company estimates that, at a large musical event, one person in every 50 insured people is likely to make a claim. The company has recently sold 1,600 insurance policies relating to the...

An insurance company estimates that, at a large musical event, one person in every 50 insured people is likely to make a claim. The company has recently sold 1,600 insurance policies relating to the musical event.

(a) How many claims can the company expect?

(b) If the typical claim is for £750 what is the minimum (ignore all other costs) the company must charge for each policy in order to break even? R5.3. The probability that a record shop will sell at most 8 copies of a CD of the music event each day is 0.60 and the probability that it will sell 9 to 12 copies of the CD each day is 0.35. What is the probability of (a) at least 9 sales; (b) at most 12 sales;

(c) more than 12 sales?