e insurance company has determined the probabilities for various claim amounts for drivers age 21 – 26. Calculate the expected value in and describe what it means in practical terms. Amount of Claim Probability 0 0.82 1,000 0.05 2,000 0.02 3,000 0.06 4,000 0.05
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
An automobile insurance company has determined the probabilities for various claim amounts for drivers age 21 – 26. Calculate the
| Amount of Claim | |
| 0 | 0.82 |
| 1,000 | 0.05 |
| 2,000 | 0.02 |
| 3,000 | 0.06 |
| 4,000 | 0.05 |
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