The Mountain States Office of State Farm Insurance Company reports that approximately 89% of all automobile damage liability claims were made by people under 25 years of age. A random sample of five automobile insurance liability claims is under study. a. Make a histogram showing the probability that r= 0 to 5 claims are made by people under 25 years of age. b. Find the mean and standard deviation of this probability distribution. ( Round your standard deviation to two decimal places) mean claims standard deviation claims Fie samples of size 5, what is the expected number of claims made by people under 25 years of age?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
The Mountain States Office of State Farm Insurance Company reports that approximately 89% of all automobile damage liability claims were made by people under 25 years of age. A random sample of five automobile insurance liability claims is under study.
a. Make a histogram showing the
b. Find the
mean claims
standard deviation claims
Fie samples of size 5, what is the expected number of claims made by people under 25 years of age?
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