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.)

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

Expert Solution