I was wondering if these answers are correct. Explain.  A study by Quadrant Information Services commissioned by Insure.com  calculated auto insurance rates for each of the 50 states; and as a result, the average annual rate for the United States was $1,317. Suppose annual rates of auto insurance in the United States are normally distributed with a standard  deviation of $324. According to MoneyGeek, a state minimum auto insurance policy in Florida costs an average of $1123 per year and the average cost of full coverage car insurance in Florida is $2208. What percentage of policies cost less than the Florida state minimum policy of $1123? z = (x - mu) / sigma z = (1123-1317)/324 z= -0.59876543 P-value from Z-Table: P(x<1123) = 0.27466 The answer is less than I expected. After using a z-table to determine the score it results in 27% of policies that are less than the minimum policy of 1123.   What percentage of auto insurance rates would be less than $1,200? z = (x - mu) / sigma z = (1200-1317)/324 z= -117/324 z= -0.36 P-value from Z-Table: P(x<1200) = 0.35901 The answer is about what I expected. I expected it to be low because of the vast amount of uninsured motorists in Florida. I know a lot of people that have unfortunately been involved in these accidents.   What percentage of policies cost more than the Florida full coverage cost of $2208? z = (x - mu) / sigma z = (2208-1317)/324 z=2.75 P-value from Z-Table: P(x<2208) = 0.99702

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I was wondering if these answers are correct. Explain. 

A study by Quadrant Information Services commissioned by Insure.com  calculated auto insurance rates for each of the 50 states; and as a result, the average annual rate for the United States was $1,317. Suppose annual rates of auto insurance in the United States are normally distributed with a standard  deviation of $324.

According to MoneyGeek, a state minimum auto insurance policy in Florida costs an average of $1123 per year and the average cost of full coverage car insurance in Florida is $2208.

  1. What percentage of policies cost less than the Florida state minimum policy of $1123?

z = (x - mu) / sigma

z = (1123-1317)/324

z= -0.59876543

P-value from Z-Table:

P(x<1123) = 0.27466

The answer is less than I expected. After using a z-table to determine the score it results in 27% of policies that are less than the minimum policy of 1123.

 

  1. What percentage of auto insurance rates would be less than $1,200?

z = (x - mu) / sigma

z = (1200-1317)/324

z= -117/324

z= -0.36

P-value from Z-Table:

P(x<1200) = 0.35901

The answer is about what I expected. I expected it to be low because of the vast amount of uninsured motorists in Florida. I know a lot of people that have unfortunately been involved in these accidents.

 

  1. What percentage of policies cost more than the Florida full coverage cost of $2208?

z = (x - mu) / sigma

z = (2208-1317)/324

z=2.75

P-value from Z-Table:

P(x<2208) = 0.99702

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