1)
P(x < 170)
z = ( x -mean)/(s/sqrt(n))
= ( 170 - 150)/(900/sqrt(10000)
= 2.2222
P(x <170) = P(z < 2.2222) = 0.9869
2)
a)
3,4,6,10
b)
mean = 23/4 = 5.75
c)
(3,4) (3,6) (3,10) ( 4,6) ( 4,10) ( 6,10)
d) mean of sample size 2 = 3.5 , 4.5 , 6.5 , 5 ,7 ,8
mean of samping distribution = 5.75
(1 point) An insurance company knows that in the entire population of millions of homeowners, the...
65. More on insurance An insurance company claims 7 that in the entire population of homeowners, the mea annual loss from fire is μ-5250 and the standard deviation of the loss is σ 5000, The distribution of fosses is strongly right-sken ed:用ant pdilcies have S0 loss, but a few have large losses. The company hopes to sell 1000 of these policies for $300 each (b) If the company wants to be 90%eertainthat themean loss from fire in an SRS of...
Step It The ides of insurance is that we all face fisks that are unlikely but carry high cost Think of a fire destroying your home So we form a group to gare the risk: we all pay ?? smal amount, and the insurance polcy pays a large arount to those few of us whose homes burn down. An insurance company locks at the records for millions of homeowners and sees that te mean loss from fire in a year...
The idea of insurance is that we all face risks that are unlikely but carry high cost. Think of a fire destroying your home. Insurance spreads the risk: we all pay a small amount, and the insurance policy pays a large amount to those few of us whose homes burn down. An insurance company looks at the records for millions of homeowners and sees that the mean loss from fire in a year is μ = $250 per person. (Most...
The idea of insurance is that we all face risks that are unlikely but carry high cost. Think of a fire destroying your home. Insurance spreads the risk: we all pay a small amount, and the insurance policy pays a large amount to those few of us whose homes burn down. An insurance company looks at the records for millions of homeowners and sees that the mean loss from fire in a year is μ = $250 per person. (Most...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $300, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $290,000. a. Make a table of the two possible payouts on each policy with the probability of each. b. Suppose you own the entire firm, and the company issues only one policy. What are the expected value, variance and standard deviation of your...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $270, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $260,000. a. Make a table of the two possible payouts on each policy with the probability of each. b. Suppose you own the entire firm, and the company issues only one policy. What are the expected value, variance and standard deviation of your...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $310, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $300,000. a. Make a table of the two possible payouts on each policy with the probability of each. Outcome A: No Fire Outcome B: Fire! Payout b. Suppose you own the entire firm, and the company issues only one polley. What are the...
please hightlight the answers Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $200, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $190,000 a. Make a table of the two possible payouts on each policy with the probability of each. Outcome A: No Fire $ o Outcome B: Fire! 190,000 Payout b. Suppose you own the entire firm, and the company...
Insurance coverage relies on 1. the law of large numbers, meaning Events that are statistically difficult to predict for a specific individual are more predictable for a large number of individuals b. Events that are statistically difficult to predict for a large number of individuals a. predictable are more individual. for an Insurers can statistically predict whether an individual will suffer a loss more accurately than they statistically predict whether a large number of individuals will suffer losses. d. C....