2) The average cost of six month Florida auto insurance in 2018 was $700. Assume the...

2) The average cost of six month Florida auto insurance in 2018 was $700. Assume the standard deviation is σ = $50. What will be the probability of a value higher than 20% of the population mean?

Solutions

Expert Solution

20% of 700 = 140

Therefore, a value higher than 20% of the population mean =140+700 =840

P[X>840]

=P[Z>2.8]

=1-0.9974..........................by using normal probability table.

=0.0026

orchestra answered 1 year ago

Next > < Previous

Related Solutions

The average cost of six month Florida auto insurance in 2018 was $700. Assume the standard...

The average cost of six month Florida auto insurance in 2018 was $700. Assume the standard deviation is σ = $50. What will be the probability of a value higher than 20% of the population mean?

For an auto insurance company, the average cost of collision claims is $500 per year for...

For an auto insurance company, the average cost of collision claims is $500 per year for careful drivers and $3000 per year for poor drivers. The drivers are risk neutral and know whether they are careful or poor, but the insurance company only knows that 15% of drivers are poor. What is the insurance company's breakeven price for the collision insurance? A. $425 per year B. $450 per year C. $875 per year D. $2,625 per year

QUESTION 1 For an auto insurance company, the average cost of collision claims is $500 per...

QUESTION 1 For an auto insurance company, the average cost of collision claims is $500 per year for careful drivers and $3000 per year for poor drivers. The drivers are risk neutral and know whether they are careful or poor, but the insurance company only knows that 15% of drivers are poor. What is the insurance company's breakeven price for the collision insurance? A. $425 per year B. $450 per year C. $875 per year D. $2,625 per year 2...

CNNBC recently reported that the mean annual cost of auto insurance is 1002 dollars. Assume the...

CNNBC recently reported that the mean annual cost of auto insurance is 1002 dollars. Assume the standard deviation is 214 dollars, and the cost is normally distributed. You take a simple random sample of 18 auto insurance policies. Round your answers to 4 decimal places. What is the distribution of XX? XX ~ N(,) What is the distribution of ¯xx¯? ¯xx¯ ~ N(,) What is the probability that one randomly selected auto insurance is less than $1042? a simple random...

CNNBC recently reported that the mean annual cost of auto insurance is 966 dollars. Assume the...

CNNBC recently reported that the mean annual cost of auto insurance is 966 dollars. Assume the standard deviation is 244 dollars, and the cost is normally distributed. You take a simple random sample of 38 auto insurance policies. Round your answers to 4 decimal places. What is the distribution of XX? XX ~ N(,) What is the distribution of ¯xx¯? ¯xx¯ ~ N(,) What is the probability that one randomly selected auto insurance is more than $919? a simple random...

CNNBC recently reported that the mean annual cost of auto insurance is 999 dollars. Assume the...

CNNBC recently reported that the mean annual cost of auto insurance is 999 dollars. Assume the standard deviation is 299 dollars. You take a simple random sample of 67 auto insurance policies. Find the probability that a single randomly selected value is at least 963 dollars. P(X > 963) = Find the probability that a sample of size n = 67 is randomly selected with a mean that is at least 963 dollars. P(M > 963) =

CNNBC recently reported that the mean annual cost of auto insurance is 1004 dollars. Assume the...

CNNBC recently reported that the mean annual cost of auto insurance is 1004 dollars. Assume the standard deviation is 278 dollars. You take a simple random sample of 55 auto insurance policies. Find the probability that a single randomly selected value is less than 997 dollars. P(X < 997) = Find the probability that a sample of size n = 55 is randomly selected with a mean less than 997 dollars. P( ¯ x < 997) =

CNNBC recently reported that the mean annual cost of auto insurance is 1008 dollars. Assume the...

CNNBC recently reported that the mean annual cost of auto insurance is 1008 dollars. Assume the standard deviation is 299 dollars. You take a simple random sample of 58 auto insurance policies. Find the probability that a single randomly selected value is more than 961 dollars. P(X > 961) = Find the probability that a sample of size n = 58 is randomly selected with a mean that is more than 961 dollars. P(M > 961) =

CNNBC recently reported that the mean annual cost of auto insurance is 978 dollars. Assume the...

CNNBC recently reported that the mean annual cost of auto insurance is 978 dollars. Assume the standard deviation is 299 dollars. You take a simple random sample of 92 auto insurance policies. Find the probability that a single randomly selected value is less than 988 dollars. P(X < 988) = ___________ Find the probability that a sample of size n=92n=92 is randomly selected with a mean less than 988 dollars. P(M < 988) = ____________

CNNBC recently reported that the mean annual cost of auto insurance is 954 dollars. Assume the...

CNNBC recently reported that the mean annual cost of auto insurance is 954 dollars. Assume the standard deviation is 213 dollars. You take a simple random sample of 87 auto insurance policies. Find the probability that a single randomly selected value exceeds 1000 dollars. P(X > 1000) = Find the probability that a sample of size n = 87 is randomly selected with a mean that exceeds 1000 dollars. P(M > 1000) = Enter your answers as numbers accurate to...

Subjects