Answered: Great Insurance company has collected…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Great Insurance company has collected the data regarding the duration (how long it takes) to
settle insurance claims. The data collected indicate that the duration follows a normal distribution
with mean 28 days and standard deviation 8 days.
a) What proportion of the duration is between 20 and 40 days old?
b) What proportion of the duration is less than 30 days old?
c) What is the number of days in which 75% of all claims are above?

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.

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