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Mathematics, 29.07.2020 02:01 Jasten
A company has five employees on its health insurance plan. Each year, each employee independently has an 80% probability of no hospital admissions. If an employee requires one or more hospital admissions, the number of admissions is modeled by a geometric distribution with a mean of 1.50. The numbers of hospital admissions of different employees are mutually independent. Each hospital admission costs 20,000. Calculate the probability that the company's total hospital costs in a year are less than 50,000.
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A company has five employees on its health insurance plan. Each year, each employee independently ha...
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