CNNBC recently reported that the mean annual cost of auto insurance is 1038 dollars. Assume the standard deviation is 264 dollars. You take a simple random sample of 87 auto insurance policies. Find the probability that a single randomly selected value is less than 998 dollars. P(X < 998) = Find the probability that a sample of size n = 87 is randomly selected with a mean less than 998 dollars. P(M<998) =
CNNBC recently reported that the mean annual cost of auto insurance is 1038 dollars. Assume the standard deviation is 264 dollars. You take a simple random sample of 87 auto insurance policies. Find the probability that a single randomly selected value is less than 998 dollars. P(X < 998) = Find the probability that a sample of size n = 87 is randomly selected with a mean less than 998 dollars. P(M<998) =
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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![**Understanding Auto Insurance Costs**
CNNBC recently reported that the mean annual cost of auto insurance is 1038 dollars. Assume the standard deviation is 264 dollars. You take a simple random sample of 87 auto insurance policies.
**Question 1: Single Value Probability**
Find the probability that a single randomly selected value is less than 998 dollars.
\[ P(X < 998) = \]
**Question 2: Sample Mean Probability**
Find the probability that a sample of size \( n = 87 \) is randomly selected with a mean less than 998 dollars.
\[ P(M < 998) = \]
To solve these problems, we use the properties of the normal distribution.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e97f72a-1c8d-4466-a361-8c71e85dddcc%2F206f4a43-0554-4ae8-b9a7-da563ea0011c%2Ffa9am66_processed.png&w=3840&q=75)
Transcribed Image Text:**Understanding Auto Insurance Costs**
CNNBC recently reported that the mean annual cost of auto insurance is 1038 dollars. Assume the standard deviation is 264 dollars. You take a simple random sample of 87 auto insurance policies.
**Question 1: Single Value Probability**
Find the probability that a single randomly selected value is less than 998 dollars.
\[ P(X < 998) = \]
**Question 2: Sample Mean Probability**
Find the probability that a sample of size \( n = 87 \) is randomly selected with a mean less than 998 dollars.
\[ P(M < 998) = \]
To solve these problems, we use the properties of the normal distribution.
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