Question

State Farm Insurance studies show that in Colorado, 45% of the auto insurance claims submitted for property damage were submitted by males under 25 years of age. Suppose 8 property damage claims involving automobiles are selected at random.

(b) What is the probability that six 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

Part b)

P ( X >= 6 ) = 0.088

Part c)

Mean = n * P = ( 8 * 0.45 ) = 3.60
Variance = n * P * Q = ( 8 * 0.45 * 0.55 ) = 1.98
Standard deviation = = 1.4071   1.41