Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

Question

Want to see the full answer?

Answer 1

Question

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.

Chapter 17, Problem 4E

(a)

To determine

Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

(b)

To determine

Explain whether it is possible to estimate the probability that the next 10 Sunday customers will spend an average of at least $40.

(c)

To determine

Explain whether it is possible to estimate that the next 50 Sunday customers will spend an average of at least $40.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

PEER REPLY 1: Choose a classmate's Main Post and review their decision making process. 1. Choose a risk level for each of the states of nature (assign a probability value to each). 2. Explain why each risk level is chosen. 3. Which alternative do you believe would be the best based on the maximum EMV? 4. Do you feel determining the expected value with perfect information (EVWPI) is worthwhile in this situation? Why or why not?

Questions An insurance company's cumulative incurred claims for the last 5 accident years are given in the following table: Development Year Accident Year 0 2018 1 2 3 4 245 267 274 289 292 2019 255 276 288 294 2020 265 283 292 2021 263 278 2022 271 It can be assumed that claims are fully run off after 4 years. The premiums received for each year are: Accident Year Premium 2018 306 2019 312 2020 318 2021 326 2022 330 You do not need to make any allowance for inflation. 1. (a) Calculate the reserve at the end of 2022 using the basic chain ladder method. (b) Calculate the reserve at the end of 2022 using the Bornhuetter-Ferguson method. 2. Comment on the differences in the reserves produced by the methods in Part 1.

You are provided with data that includes all 50 states of the United States. Your task is to draw a sample of: o 20 States using Random Sampling (2 points: 1 for random number generation; 1 for random sample) o 10 States using Systematic Sampling (4 points: 1 for random numbers generation; 1 for random sample different from the previous answer; 1 for correct K value calculation table; 1 for correct sample drawn by using systematic sampling) (For systematic sampling, do not use the original data directly. Instead, first randomize the data, and then use the randomized dataset to draw your sample. Furthermore, do not use the random list previously generated, instead, generate a new random sample for this part. For more details, please see the snapshot provided at the end.) Upload a Microsoft Excel file with two separate sheets. One sheet provides random sampling while the other provides systematic sampling. Excel snapshots that can help you in organizing columns are provided on the next…

Answer 2

Question

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.

Chapter 17, Problem 4E

(a)

To determine

Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

(b)

To determine

Explain whether it is possible to estimate the probability that the next 10 Sunday customers will spend an average of at least $40.

(c)

To determine

Explain whether it is possible to estimate that the next 50 Sunday customers will spend an average of at least $40.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

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.

Chapter 17, Problem 4E

(a)

To determine

Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

(b)

To determine

Explain whether it is possible to estimate the probability that the next 10 Sunday customers will spend an average of at least $40.

(c)

To determine

Explain whether it is possible to estimate that the next 50 Sunday customers will spend an average of at least $40.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

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.

Chapter 17, Problem 4E

(a)

To determine

Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

(b)

To determine

Explain whether it is possible to estimate the probability that the next 10 Sunday customers will spend an average of at least $40.

(c)

To determine

Explain whether it is possible to estimate that the next 50 Sunday customers will spend an average of at least $40.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 17, Problem 4E

(a)

To determine

Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

(b)

To determine

Explain whether it is possible to estimate the probability that the next 10 Sunday customers will spend an average of at least $40.

(c)

To determine

Explain whether it is possible to estimate that the next 50 Sunday customers will spend an average of at least $40.

Answer 6

Chapter 17, Problem 4E

(a)

To determine

Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

Answer 7

Chapter 17, Problem 4E

(a)

To determine

Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

Answer 8

(b)

To determine

Explain whether it is possible to estimate the probability that the next 10 Sunday customers will spend an average of at least $40.

Answer 9

(b)

To determine

Explain whether it is possible to estimate the probability that the next 10 Sunday customers will spend an average of at least $40.

Answer 10

(c)

To determine

Explain whether it is possible to estimate that the next 50 Sunday customers will spend an average of at least $40.

Answer 11

(c)

To determine

Explain whether it is possible to estimate that the next 50 Sunday customers will spend an average of at least $40.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 17.2 - Every 10 years, the United States takes a census....Ch. 17.2 - Every 10 years, the United States takes a census....Ch. 17.2 - Prob. 3JC Ch. 17.2 - Prob. 4JC Ch. 17.2 - Prob. 5JC Ch. 17.3 - In discussing estimates based on the long-form...Ch. 17 - Prob. 1E Ch. 17 - 2. LSAT The LSAT (a test taken for law school...Ch. 17 - 3. Tips A waiter believes the distribution of his...Ch. 17 - 4. Groceries A grocery store’s receipts show that...

Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

Concept explainers

Videos

Explain why it is not possible to determine the probability that the next Sunday customer will spend at least $40.

Explain whether it is possible to estimate the probability that the next 10 Sunday customers will spend an average of at least $40.

Explain whether it is possible to estimate that the next 50 Sunday customers will spend an average of at least $40.

Want to see the full answer?

Chapter 17 Solutions