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
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
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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