Question
In: Statistics and Probability
An insurance company’s database includes a variable, DAMAGE, that records, for each customer claim of automobile...
An insurance company’s database includes a variable, DAMAGE, that records, for each customer claim of automobile damage due to hail, the severity of the damage to the car. DAMAGE is recorded as 1 = minor damage, …, 5 = totaled. Also in the data table is DAY, the day of the week of the hail damage (Monday, Tuesday, …). One of the following graphs is an appropriate way to display the association between DAMAGE and DAY. Which one?
a. Cross-tabulation
b. Scatterplot
c. Side-by-side boxplots
Solutions
Expert Solution
Variable 1: DAMAGE is recoras ded as 1 = minor damage, …, 5 = totaled.
Variable 2: The day of the week of the hail damage (Monday, Tuesday, …)
Now, there are two variables and to understand the correlation between different variables. Both the variables are categorical variables as there is order in the values. For ex. Value 1 to 5 in damage according to damage amount and type of accident
Here, we can use cross tabulation method as this method analyse relationship between multiple variables.
orchestra answered 2 years agoRelated Solutions
An insurance company’s database includes a variable, DAMAGE, that records, for each customer claim of automobile...
An insurance company’s database includes a variable, DAMAGE,
that records, for each customer claim of automobile damage due to
hail, the severity of the damage to the car. DAMAGE is recorded as
1 = minor damage, …, 5 = totaled. One of the following graphs is an
appropriate way to display the DAMAGE variable. Which one?
a. Time-series plot
b. Boxplot
c. Pie chart
The owner of an automobile insures it against damage by purchasing an insurance policy with a...
The owner of an automobile insures it against damage by
purchasing an insurance policy with a deductible of 250. In the
event that the automobile is damaged, repair costs can be modeled
by a uniform random variable on the interval (0, 1500)
In the above question, I am asked to find Var(Y) where Y = (X -
250). The solution actually involves finding E(Y) and E(Y^2)
through intergration, then Var(Y) = E(Y^2) - E(Y)^2. I understand
the solution.
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Suppose the national average dollar amount for an automobile insurance claim is $890.34. You work for...
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An automobile insurance company predicts that 15% of policy holders file a claim within the next...
An automobile insurance company predicts that 15% of policy
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many policy holders, we may assume that filing a claim is
independent between policy holders.
a. If 15 policy holders are randomly selected, what is the
probability that exactly two will file a claim
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An automobile insurance company predicts that 15% of policy holders file a claim within the next...
An automobile insurance company predicts that 15% of policy
holders file a claim within the next (8pt) year. Since this company
has many policy holders, we may assume that filing a claim is
independent between policy holders.
a. If 15 policy holders are randomly selected, what is the
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file a claim within the next year? What calculator command and
inputs did you use?
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probability...
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