Applied Statistics and Probability for Engineers
6th Edition
ISBN: 9781118539712
Author: Douglas C. Montgomery
Publisher: WILEY
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Chapter 2.2, Problem 68E
a.
To determine
Find the number of paths is possible.
b.
To determine
Find the
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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.
To help consumers in purchasing a laptop computer, Consumer Reports calculates an overall test score for each computer tested based upon rating factors such as ergonomics, portability, performance, display, and battery life. Higher overall scores indicate better test results. The following data show the average retail price and the overall score for ten 13-inch models (Consumer Reports website, October 25, 2012).
Brand & Model
Price ($)
Overall Score
Samsung Ultrabook NP900X3C-A01US
1250
83
Apple MacBook Air MC965LL/A
1300
83
Apple MacBook Air MD231LL/A
1200
82
HP ENVY 13-2050nr Spectre XT
950
79
Sony VAIO SVS13112FXB
800
77
Acer Aspire S5-391-9880 Ultrabook
1200
74
Apple MacBook Pro MD101LL/A
1200
74
Apple MacBook Pro MD313LL/A
1000
73
Dell Inspiron I13Z-6591SLV
700
67
Samsung NP535U3C-A01US
600
63
a. Select a scatter diagram with price as the independent variable.
b. What does the scatter diagram developed in part (a) indicate about the relationship…
To the Internal Revenue Service, the reasonableness of total itemized deductions depends on the taxpayer’s adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger than average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow.
Adjusted Gross Income ($1000s)
Reasonable Amount ofItemized Deductions ($1000s)
22
9.6
27
9.6
32
10.1
48
11.1
65
13.5
85
17.7
120
25.5
Compute b1 and b0 (to 4 decimals).b1 b0 Complete the estimated regression equation (to 2 decimals). = + x
Predict a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $52.5 thousand (to 2 decimals). thousand dollarsWhat is the value, in dollars, of…
Chapter 2 Solutions
Applied Statistics and Probability for Engineers
Ch. 2.1 - Prob. 1ECh. 2.1 - Prob. 2ECh. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...
Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - Provide a reasonable description of the sample...Ch. 2.1 - 2-18. Three attempts are made to read data in a...Ch. 2.1 - 2-19. Three events are shown on the Venn diagram...Ch. 2.1 - 2-20. Three events are shown on the Venn diagram...Ch. 2.1 - 2-21. A digital scale that provides weights to the...Ch. 2.1 - Prob. 22ECh. 2.1 - 2-23. Go Tutorial Four bits are transmitted over...Ch. 2.1 - 2-24. In light-dependent photosynthesis, light...Ch. 2.1 - 2-25. In control replication, cells are replicated...Ch. 2.1 - 2-26. Disks of polycarbonate plastic from a...Ch. 2.1 - 2-27. Samples of a cast aluminum part are...Ch. 2.1 - 2-28. Samples of emissions from three suppliers...Ch. 2.1 - 2-29. The rise time of a reactor is measured in...Ch. 2.1 - Prob. 30ECh. 2.1 - Prob. 31ECh. 2.1 - 2-32. Counts of the Web pages provided by each of...Ch. 2.1 - 2-33. A reactor’s rise time is measured in minutes...Ch. 2.1 - 2-34. A wireless garage door opener has a code...Ch. 2.1 - Prob. 35ECh. 2.1 - 2-36. In a manufacturing operation, a part is...Ch. 2.1 - 2-37. New designs for a wastewater treatment tank...Ch. 2.1 - 2-38. A manufacturing process consists of 10...Ch. 2.1 - Prob. 39ECh. 2.1 - 2-40. In a sheet metal operation, three notches...Ch. 2.1 - Prob. 41ECh. 2.1 - 2-42. In the layout of a printed circuit board for...Ch. 2.1 - 2-43. In the laboratory analysis of samples from a...Ch. 2.1 - 2-44. In the design of an electromechanical...Ch. 2.1 - 2-45. Consider the design of a communication...Ch. 2.1 - 2-46. A byte is a sequence of eight bits and each...Ch. 2.1 - 2-47. In a chemical plant, 24 holding tanks are...Ch. 2.1 - 2-48. Plastic parts produced by an...Ch. 2.1 - 2-49. A bin of 50 parts contains 5 that are...Ch. 2.1 - 2-50. The following table summarizes 204...Ch. 2.1 - 2-51. A Web ad can be designed from four different...Ch. 2.1 - 2-52. Consider the hospital emergency department...Ch. 2.1 - 2-53. An article in The Journal of Data Science...Ch. 2.1 - 2-54. Similar to the hospital schedule in Example...Ch. 2.1 - 2-55. Consider the bar code in Example 2-12. One...Ch. 2.1 - 2-56. A computer system uses passwords that...Ch. 2.1 - Prob. 57ECh. 2.2 - 2-58. Each of the possible five outcomes of a...Ch. 2.2 - 2-59. The sample space of a random experiment is...Ch. 2.2 - 2-60. Orders for a computer are summarized by the...Ch. 2.2 - Prob. 61ECh. 2.2 - Prob. 62ECh. 2.2 - 2-63. An injection-molded part is equally likely...Ch. 2.2 - 2-64. In an acid-base titration, a base or acid is...Ch. 2.2 - Prob. 65ECh. 2.2 - Prob. 66ECh. 2.2 - 2-67. Suppose your vehicle is licensed in a state...Ch. 2.2 - Prob. 68ECh. 2.2 - 2-69. Magnesium alkyls are used as homogenous...Ch. 2.2 - 2-70. Disks of polycarbonate plastic from a...Ch. 2.2 - 2-71. Samples of emissions from three suppliers...Ch. 2.2 - Prob. 72ECh. 2.2 - Prob. 73ECh. 2.2 - Prob. 74ECh. 2.2 - 2-75. A Web ad can be designed from four different...Ch. 2.2 - Prob. 76ECh. 2.2 - Prob. 77ECh. 2.2 - 2-78. Consider the bar code in Example 2-12....Ch. 2.2 - 2-79. Similar to the hospital schedule in Example...Ch. 2.2 - Prob. 80ECh. 2.2 - 2-81. A computer system uses passwords that...Ch. 2.3 - 2-82. If P(A) = 0.3, P(B) = 0.2, and P(A B) =...Ch. 2.3 - 2-83. If A, B, and C are mutually exclusive events...Ch. 2.3 - 2-84. In the article “ACL Reconstruction Using...Ch. 2.3 - 2-85. Disks of polycarbonate plastic from a...Ch. 2.3 - 2-86. Strands of copper wire from a manufacturer...Ch. 2.3 - 2-87. The analysis of shafts for a compressor is...Ch. 2.3 - 2-88. Cooking oil is produced in two main...Ch. 2.3 - 2-89. A manufacturer of front lights for...Ch. 2.3 - 2-90. A computer system uses passwords that are...Ch. 2.3 - 2-91. Consider the endothermic reactions in...Ch. 2.3 - 2-92. A Web ad can be designed from four different...Ch. 2.3 - Prob. 93ECh. 2.3 - Prob. 94ECh. 2.3 - 2-95. Consider the barcode in Example 2-12....Ch. 2.3 - Prob. 96ECh. 2.3 - Prob. 97ECh. 2.3 - Prob. 98ECh. 2.4 - 2-99. Disks of polycarbonate plastic from a...Ch. 2.4 - 2-100. Samples of skin experiencing desquamation...Ch. 2.4 - 2-101. The analysis of results from a leaf...Ch. 2.4 - 2-102. Samples of a cast aluminum part are...Ch. 2.4 - 2-103. The following table summarizes the analysis...Ch. 2.4 - 2-104. Consider the data on wafer contamination...Ch. 2.4 - 2-105. The following table summarizes the number...Ch. 2.4 - 2-106. A maintenance firm has gathered the...Ch. 2.4 - 2-107. A lot of 100 semiconductor chips contains...Ch. 2.4 - 2-108. A batch of 500 containers for frozen orange...Ch. 2.4 - 2-109. A batch of 350 samples of rejuvenated...Ch. 2.4 - 2-110. A computer system uses passwords that are...Ch. 2.4 - 2-111. If , must A = B? Draw a Venn diagram to...Ch. 2.4 - 2-112. Suppose A and B are mutually exclusive...Ch. 2.4 - 2-113. Consider the endothermic reactions in...Ch. 2.4 - Prob. 114ECh. 2.4 - Prob. 115ECh. 2.4 - 2-116. An article in the The Canadian Entomologist...Ch. 2.4 - 2-117. Consider the bar code in Example 2-12....Ch. 2.4 - Prob. 118ECh. 2.4 - Prob. 119ECh. 2.4 - 2-120. A computer system uses passwords that...Ch. 2.5 - 2-121. Suppose that and . Determine the...Ch. 2.5 - Prob. 122ECh. 2.5 - 2-123. The probability is 1% that an electrical...Ch. 2.5 - 2-124. Suppose 2% of cotton fabric rolls and 3% of...Ch. 2.5 - 2-125. The edge roughness of slit paper products...Ch. 2.5 - 2-126. In the 2012 presidential election, exit...Ch. 2.5 - 2-127. Computer keyboard failures are due to...Ch. 2.5 - 2-128. Heart failures are due to either natural...Ch. 2.5 - Prob. 129ECh. 2.5 - Prob. 130ECh. 2.5 - Prob. 131ECh. 2.5 - 2-132. Consider the endothermic reactions in...Ch. 2.5 - Prob. 133ECh. 2.5 - 2-134. Consider the hospital emergency room data...Ch. 2.5 - Prob. 135ECh. 2.5 - Prob. 136ECh. 2.5 - 2-137. A Web ad can be designed from four...Ch. 2.5 - 2-138. Consider the code in Example 2-12. Suppose...Ch. 2.5 - 2-139. Similar to the hospital schedule in Example...Ch. 2.5 - Prob. 140ECh. 2.5 - 2-141. A computer system uses passwords that...Ch. 2.6 - 2-142. If , and , are the events A and B...Ch. 2.6 - 2-143. If , and , are the events B and the...Ch. 2.6 - 2-144. If , and A and B are mutually exclusive,...Ch. 2.6 - 2-145. A batch of 500 containers of frozen orange...Ch. 2.6 - 2-146. Disks of polycarbonate plastic from a...Ch. 2.6 - 2-147. Samples of emissions from three suppliers...Ch. 2.6 - 2-148. Redundant array of inexpensive disks (RAID)...Ch. 2.6 - 2-149. The probability that a lab specimen...Ch. 2.6 - 2-150. In a test of a printed circuit board using...Ch. 2.6 - 2-151. Six tissues are extracted from an ivy plant...Ch. 2.6 - 2-152. A player of a video game is confronted with...Ch. 2.6 - 2-153. In an acid-base titration, a base or acid...Ch. 2.6 - Prob. 154ECh. 2.6 - Prob. 155ECh. 2.6 - 2-156. The following circuit operates if and only...Ch. 2.6 - Prob. 157ECh. 2.6 - Prob. 158ECh. 2.6 - Prob. 159ECh. 2.6 - Prob. 160ECh. 2.6 - 2-161. A Web ad can be designed from four...Ch. 2.6 - Prob. 162ECh. 2.6 - Prob. 163ECh. 2.6 - 2-164. Table 2-1 provides data on wafers...Ch. 2.6 - 2-165. Table 2-1 provides data on wafers...Ch. 2.7 - Prob. 166ECh. 2.7 - Prob. 167ECh. 2.7 - Prob. 168ECh. 2.7 - Prob. 169ECh. 2.7 - 2-170. In the 2012 presidential election, exit...Ch. 2.7 - Prob. 171ECh. 2.7 - 2-172. An inspector working for a manufacturing...Ch. 2.7 - 2-173. A new analytical method to detect...Ch. 2.7 - 2-174. Consider the endothermic reactions in...Ch. 2.7 - Prob. 175ECh. 2.7 - Prob. 176ECh. 2.7 - 2-177. Two Web colors are used for a site...Ch. 2.7 - Prob. 178ECh. 2.7 - 2-179. An e-mail filter is planned to separate...Ch. 2.7 - 2-180. A recreational equipment supplier finds...Ch. 2.7 - Prob. 181ECh. 2.8 - 2-182. Decide whether a discrete or continuous...Ch. 2.8 - 2-183. Decide whether a discrete or continuous...Ch. 2.8 - 2-184. Decide whether a discrete or continuous...Ch. 2 - Prob. 185SECh. 2 - 2-186. A sample of three calculators is selected...Ch. 2 - 2-187. Samples of a cast aluminum part are...Ch. 2 - 2-188. Shafts are classified in terms of the...Ch. 2 - 2-189. If A, B, and C are mutually exclusive...Ch. 2 - 2-190. The analysis of shafts for a compressor is...Ch. 2 - 2-191. A researcher receives 100 containers of...Ch. 2 - 2-192. A lot contains 15 castings from a local...Ch. 2 - 2-193. In the manufacturing of a chemical...Ch. 2 - 2-194. Incoming calls to a customer service...Ch. 2 - 2-195. A congested computer network has a 0.002...Ch. 2 - 2-196. Samples of a cast aluminum part are...Ch. 2 - 2-197. Go Tutorial An optical storage device uses...Ch. 2 - 2-198. Semiconductor lasers used in optical...Ch. 2 - 2-199. Energy released from cells breaks the...Ch. 2 - 2-200. A sample preparation for a chemical...Ch. 2 - 2-201. In circuit testing of printed circuit...Ch. 2 - 2-202. The data from 200 machined parts are...Ch. 2 - 2-203. Computers in a shipment of 100 units...Ch. 2 - 2-204. The probability that a customer’s order is...Ch. 2 - 2-205. Let E1, E2 and E3 denote the samples that...Ch. 2 - 2-206. Transactions to a computer database are...Ch. 2 - Prob. 207SECh. 2 - Prob. 208SECh. 2 - Prob. 209SECh. 2 - 2-210. The British government has stepped up its...Ch. 2 - Prob. 211SECh. 2 - 2-212. An encryption-decryption system consists of...Ch. 2 - 2-213. It is known that two defective copies of a...Ch. 2 - 2-214. A robotic insertion tool contains 10...Ch. 2 - Prob. 215SECh. 2 - Prob. 216SECh. 2 - 2-217. A lot of 50 spacing washers contains 30...Ch. 2 - Prob. 218SECh. 2 - Prob. 219SECh. 2 - Prob. 220SECh. 2 - 2-221. The following circuit operates if and only...Ch. 2 - 2-222. A company that tracks the use of its Web...Ch. 2 - Prob. 223SECh. 2 - Prob. 224SECh. 2 - Prob. 225SECh. 2 - 2-226. Natural red hair consists of two genes....Ch. 2 - Prob. 227SECh. 2 - Prob. 228SECh. 2 - Prob. 229SECh. 2 - Prob. 230SECh. 2 - Prob. 231SECh. 2 - 2-232. A biotechnology manufacturing firm can...Ch. 2 - 2-233. Assume the following characteristics of the...Ch. 2 - Prob. 234SECh. 2 - Prob. 235SE
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