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International Journal of Statistical Distributions (Vol. 1, 2015) study of a variable life insurance policy, Exercise 4.97 (p. 239). Recall that a ratio (x) of the rates of return on the investment for two consecutive years was shown to have a normal distribution, with μ = 1.5 and o= .2. Consider a random sample of 100 variable life insurance policies and let represent the mean ratio for the sample. a. Find E(T) and interpret its value.

International Journal of Statistical Distributions (Vol. 1, 2015) study of a variable life insurance policy, Exercise 4.97 (p. 239). Recall that a ratio (x) of the rates of return on the investment for two consecutive years was shown to have a normal distribution, with μ = 1.5 and o= .2. Consider a random sample of 100 variable life insurance policies and let represent the mean ratio for the sample. a. Find E(T) and interpret its value.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
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5.28 Variable life insurance return rates. Refer to the International Journal of Statistical Distributions (Vol. 1, 2015) study of a variable life insurance policy, Exercise 4.97 (p. 239). Recall that a ratio (x) of the rates of return on the investment for two consecutive years was shown to have a normal distribution, with μ = 1.5 and o= .2. Consider a random sample of 100 variable life insurance policies and let a represent the mean ratio for the sample. a. Find E(T) and interpret its value. b. Find Var(x). c. Describe the shape of the sampling distribution of . d. Find the z-score for the value = 1.52. e. Find P(x > 1.52). f. Would your answers to parts a-e change if the rates (x) of return on the investment for two consecutive years was not normally distributed? Explain.
Transcribed Image Text:5.28 Variable life insurance return rates. Refer to the International Journal of Statistical Distributions (Vol. 1, 2015) study of a variable life insurance policy, Exercise 4.97 (p. 239). Recall that a ratio (x) of the rates of return on the investment for two consecutive years was shown to have a normal distribution, with μ = 1.5 and o= .2. Consider a random sample of 100 variable life insurance policies and let a represent the mean ratio for the sample. a. Find E(T) and interpret its value. b. Find Var(x). c. Describe the shape of the sampling distribution of . d. Find the z-score for the value = 1.52. e. Find P(x > 1.52). f. Would your answers to parts a-e change if the rates (x) of return on the investment for two consecutive years was not normally distributed? Explain.
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