An automobile insurer has found that repair claims are Normally distributed with a mean of $530 and a standard deviation of $470. (a) Find the probability that a single claim, chosen at random, will be less than $490.ANSWER:(b) Now suppose that the next 70 claims can be regarded as a random sample from the long-run claims process.Find the probability that the average of the 70 claims is smaller than $490.ANSWER:(c) If a sample larger than 70 claims is considered, there would bechance of getting asample with an average smaller then $490. (NOTE: Enter "LESS", "MORE" or "AN EQUAL" without the quotes.)

Answered: (a) Find the probability that a single…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Question

An automobile insurer has found that repair claims are Normally distributed with a mean of $530 and a standard deviation of $470.

(a) Find the probability that a single claim, chosen at random, will be less than $490.
ANSWER:
(b) Now suppose that the next 70 claims can be regarded as a random sample from the long-run claims process.
Find the probability that the average of the 70 claims is smaller than $490.
ANSWER:
(c) If a sample larger than 70 claims is considered, there would be
chance of getting a
sample with an average smaller then $490. (NOTE: Enter "LESS", "MORE" or "AN EQUAL" without the quotes.)

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Expert Solution