The Mountain States Office of State Farm Insurance Company reports that approximately 72% of all automobile...

The Mountain States Office of State Farm Insurance Company reports that approximately 72% of all automobile damage liability claims were made by people under 25 years of age. A random sample of seven automobile insurance liability claims is under study. (a) Make a histogram showing the probability that r = 0 to 7 claims are made by people under 25 years of age. Maple Generated Plot Maple Generated Plot Maple Generated Plot Maple Generated Plot Correct: Your answer is correct. (b) Find the mean and standard deviation of this probability distribution. (Round your answers to two decimal places.) μ = claims σ = claims For samples of size 7, what is the expected number of claims made by people under 25 years of age? (Round your answer to the nearest whole number.) claims

Expert Solution

Here we have

p=0.72, n=7

The pdf of X is

Following table shows the probabilities:

X	P(X=r)
0	0.0001
1	0.0024
2	0.0187
3	0.0803
4	0.2065
5	0.3186
6	0.2731
7	0.1003

Following is the histogram:

(b)

The mean is

The standard deviation is

The expected number of claims made by people under 25 years of age is 5.

orchestra answered 2 years ago

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