Find the expected number of prizes for a bondholder


Discuss the below:

In each month, the proportion of "Prize" bonds that win a prize is 1 in 11000. There is a large number of prizes and all bonds are equally likely to win each prize. Show that, for a given month, the probability that a bondholder with 5000 bonds wins at least one prize is 0.365.

For a given month find:

1) The probability taht in a group of 10 bondholders each holding 5000 bonds, four or more win at least one prize,

2) The probability in a group of 100 bondholders each holding 5000 bonds, 40 or more win at least one prize.

Find the expected number of prizes for a bondholder holding 550 bonds for 24 months.

 

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Basic Statistics: Find the expected number of prizes for a bondholder
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