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?

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 2 years ago

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