I usually find these sort of questions straightforward but this was worded pretty vaguely as I haven't really come across anything like it.
I answered all the questions but I'm not sure about the accuracy of the answers.
I was just wondering about the correct method to go about attempting such questions and if I was on the correct track.
The American Charted Insurance Company finds that 0.02% of the population (from which its policy holders are drawn) dies from a certain disease each year. The company insures 10000 people against this disease. Analysts in the company have decided that a Poisson distribution is appropriate to model the occurrence of the disease.
i) What is the mean number of people insured against this disease with British Chartered who will die from the disease in:
a) the next year?
$10000 \times 0.0002 = 2$
b) the next two years?
$10000 \times 0.0004 = 4$
ii) Find the probability that British Chartered will pay out on more than two cases of death in:
a) the next year
$P(X=r) = m^r \times \frac{e^{-m}}{r!}$ $P(X=r) = 2^1 \times \frac{e^{-2}}{1!}$ $P(X=r) = 0.271$
b) the next two years
$P(X=r) = m^r \times \frac{e^{-m}}{r!}$ $P(X=r) = 4^2 \times \frac{e^{-4}}{2!}$ $P(X=r) = 0.147$
c) the next five years
$P(X=r) = m^r \times \frac{e^{-m}}{r!}$ $P(X=r) = 10^5 \times \frac{e^{-10}}{5!}$ $P(X=r) = 0.038$
Thanks in advance!