Question

State Farm Insurance studies show that in Colorado, 50% of the auto insurance claims submitted for property damage were submitted by males under 25 years of age. Suppose 10 property damage claims involving automobiles are selected at random. (a) Let r be the number of claims made by males under age 25. Make a histogram for the r-distribution probabilities. Maple Generated Plot Maple Generated Plot Maple Generated Plot Maple Generated Plot (b) What is the probability that seven or more claims are made by males under age 25? (Use 3 decimal places.) (c) What is the expected number of claims made by males under age 25? What is the standard deviation of the r-probability distribution? (Use 2 decimal places.) μ σ

Answer 1

a)

b)

probability that seven or more claims are made by males under age 25 =P(X>=7)=0.172

c)

expected number of claims made by males under age 25 μ=np=10*0.5 =5

standard deviation of the r-probability distribution σ =sqrt(np(1-p))=1.58