Actuaries at an insurance company must determine a premium for a new type of insurance. A random sample of 40 potential purchasers of this type of insurance were found to have incurred the following losses (in dollars) during the past year. These losses would have been covered by the insurance if it were available. 100 32 0 0 470 50 0 14,589 212 93 0 0 1127 421 0 87 135 420 0 250 12 0 309 0 177 295 501 0 143 0 167 398 54 0 141 0 3709 122 0 0 Find the mean, median, and mode of these 40 losses. (b) Which of the mean, median, or mode is largest? (c) Draw a box-and-whisker plot for these data, and describe the skewness, if any. Identify any outliers (and their classification).
Actuaries at an insurance company must determine a premium for a new type of insurance. A random sample of 40 potential purchasers of this type of insurance were found to have incurred the following losses (in dollars) during the past year. These losses would have been covered by the insurance if it were available.
100 32 0 0 470 50 0 14,589 212 93
0 0 1127 421 0 87 135 420 0 250
12 0 309 0 177 295 501 0 143 0
167 398 54 0 141 0 3709 122 0 0
Find the
(b) Which of the mean, median, or mode is largest?
(c) Draw a box-and-whisker plot for these data, and describe the skewness, if any. Identify any outliers (and their classification).
(d) Which measure of center should the actuaries use to determine the premium for this insurance?
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