Question
In: Statistics and Probability
An insurance company knows that in the entire population of millions of homeowners, the mean annual loss from fire is μμ = $400 and the standard deviation of the loss is σσ = $1200
An insurance company knows that in the entire population of millions of homeowners, the mean annual loss from fire is μμ = $400 and the standard deviation of the loss is σσ = $1200. The distribution of losses is strongly right skewed: most policies have $0 loss, but a few have large losses. If the company sells 10,000 policies, what is the probability that it can safely base its rates on the assumption that its average loss will be no greater than $410?
Solutions
orchestra answered 2 years agoRelated Solutions
An insurance company knows that in the entire population of millions of homeowners, the mean annual...
An insurance company knows that in the entire population of
millions of homeowners, the mean annual loss from fire is μ = $100
and the standard deviation of the loss is σ = $400. The
distribution of losses is strongly right skewed: most policies have
$0 loss, but a few have large losses. If the company sells 10,000
policies, what is the probability that it can safely base its rates
on the assumption that its average loss will be no...
An insurance company knows that in the entire population ofmillions of homeowners, the mean annual...
An insurance company knows that in the entire population of
millions of homeowners, the mean annual loss from fire is μμ = $100
and the standard deviation of the loss is σσ = $300. The
distribution of losses is strongly right skewed: most policies have
$0 loss, but a few have large losses. If the company sells 10,000
policies, what is the probability that it can safely base its rates
on the assumption that its average loss will be no...
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What is the probability that the sample mean will be within +/-
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in intermediate calculations to 2 decimal places.)
What is the probability that the sample mean will be within +/-
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A population has a mean of 400 and a standard deviation of 90. Suppose a sample...
A population has a mean of 400 and a standard deviation of 90.
Suppose a sample of size 125 is selected and x bar is used to
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a. What is the probability that the sample mean will be within
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10. The population mean of annual salary for plumbers is $46,700, with a standard deviation of...
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A fire insurance company thought that the mean distance from a home to the nearest fire...
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Members of the community set out to show that the mean distance was
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insurance company to lower its rates. They randomly identified 64
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