Discrete Probability Distributions
Approximations

When n >100 and p <0.01, b (n, p) d Po (m =np)

Example

A large insurance company has discovered that 0.2 percent of the U.S. population is injured as a result of a particular type of accident.  This company has 15,000 policyholders carrying coverage against such an accident.  What is the probability that 15 or fewer claims will be filed against those policies next year?  Fifteen or more claims?

Solution