Question
In: Statistics and Probability
Your insurance company has coverage for three types of cars. The annual cost for each type...
Your insurance company has coverage for three types of cars. The annual cost for each type of car can be modeled using Gaussian (Normal) distribution, with the following parameters:
- Car Type 1: Mean=$520 and Standard Deviation=$110
- Car Type 2: Mean=$720 and Standard Deviation=$170
- Car Type 3: Mean=$470 and Standard Deviation=$80
Use the Random number generator and simulate 1000-long columns, for each of the three cases. Example: for the Car Type 1, use Number of variables=1, Number of random numbers=1000, Distribution=Normal, Mean=520 and Standard deviation=110, and leave random Seed empty.
Next, use either sorting to construct the appropriate histogram or rule of thumb to answer the questions:
13. What is approximate probability that Car Type 1 has an annual cost less than $350?
- a. Between 1% and 3%
- b. Between 3% and 9%
- c. Between 10% and 15%
- d. None of these
14. Which of the three types of cars is least likely to cost less than $350?
- a. Type 1
- b. Type 2
- c. Type 3
15. For which of the three types we expect that (approximately) 95% of cases will be between $300 and $740?
- a. Type 1
- b. Type 2
- c. Type 3
Solutions
orchestra answered 1 year agoRelated Solutions
Your insurance company has converage for three types of cars. The annual cost for each type...
Your insurance company has converage for three types of cars.
The annual cost for each type of car can be modeled using Gaussian
(Normal) distribution, with the following parameters:
Car Type 1: Mean=$520 and Standard Deviation=$110
Car Type 2: Mean=$720 and Standard Deviation=$170
Car Type 3: Mean=$470 and Standard Deviation=$80
Use the Random number generator and simulate 1000-long columns,
for each of the three cases. Example: for the Car Type 1, use
Number of variables=1, Number of random numbers=1000,
Distribution=Normal,...
Your insurance company has converged for three types of cars. The annual cost for each type...
Your insurance company has converged for three types of cars.
The annual cost for each type of cars can be modeled using Gaussian
(Normal) distribution, with the following parameters: (Discussions
allowed!)
Car type 1 Mean=$520 and Standard Deviation=$110
Car type 2 Mean=$720 and Standard Deviation=$170
Car type 3 Mean=$470 and Standard Deviation=$80
Use Random number generator and simulate 1000 long columns, for
each of the three cases. Example: for the Car type 1, use Number of
variables=1, Number of random...
Your insurance company has converged for three types of cars. The annual cost for each type...
Your insurance company has converged for three types of cars.
The annual cost for each type of cars can be modeled using Gaussian
(Normal) distribution, with the following parameters: (Discussions
allowed!)
Car type 1 Mean=$520 and Standard Deviation=$110
Car type 2 Mean=$720 and Standard Deviation=$170
Car type 3 Mean=$470 and Standard Deviation=$80
Use Random number generator and simulate 1000 long columns, for
each of the three cases. Example: for the Car type 1, use Number of
variables=1, Number of random...
Your insurance company has converged for three types of cars.The annual cost for each type...
Your insurance company has converged for three types of cars.
The annual cost for each type of cars can be modeled using Gaussian
(Normal) distribution, with the following parameters: (Discussions
allowed!)Car type 1 Mean=$520 and Standard Deviation=$110Car type 2 Mean=$720 and Standard Deviation=$170Car type 3 Mean=$470 and Standard Deviation=$80Use Random number generator and simulate 1000 long columns, for
each of the three cases. Example: for the Car type 1, use Number of
variables=1, Number of random numbers=1000, Distribution=Normal,
Mean=520 and...
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