Essentials Of Statistics For Business & Economics
9th Edition
ISBN: 9780357045435
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Textbook Question
Chapter 6.2, Problem 8E
Using Figure 6.6 as a guide, sketch a normal curve for a random variable x that has a
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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 6 Solutions
Essentials Of Statistics For Business & Economics
Ch. 6.1 - The random variable x is known to be uniformly...Ch. 6.1 - The random variable x is known to be uniformly...Ch. 6.1 - Cincinnati to Tampa Flight Time. Delta Airlines...Ch. 6.1 - Excel RAND Function. Most computer languages...Ch. 6.1 - Tesla Battery Recharge Time. The electric-vehicle...Ch. 6.1 - A Gallup Daily Tracking Survey found that the mean...Ch. 6.1 - 7. Suppose we are interested in bidding on a piece...Ch. 6.2 - Using Figure 6.6 as a guide, sketch a normal curve...Ch. 6.2 - A random variable is normally distributed with a...Ch. 6.2 - Draw a graph for the standard normal distribution....
Ch. 6.2 - Given that z is a standard normal random variable,...Ch. 6.2 - Given that z is a standard normal random variable,...Ch. 6.2 - 13. Given that z is a standard normal random...Ch. 6.2 - Given that z is a standard normal random variable,...Ch. 6.2 - Given that z is a standard normal random variable,...Ch. 6.2 - Given that z is a standard normal random variable,...Ch. 6.2 - Height of Dutch Men. Males in the Netherlands are...Ch. 6.2 - Large-Cap Domestic Stock Fund. The average return...Ch. 6.2 - Automobile Repair Costs. Automobile repair costs...Ch. 6.2 - Gasoline Prices. Suppose that the average price...Ch. 6.2 - Mensa Membership. A person must score in the upper...Ch. 6.2 - Television Viewing. Suppose that the mean daily...Ch. 6.2 - Time to Complete Final Exam. The time needed to...Ch. 6.2 - Labor Day Travel Costs. The American Automobile...Ch. 6.2 - Household Income in Maryland. According to Money...Ch. 6.3 - A binomial probability distribution has p=.20 and...Ch. 6.3 - Assume a binomial probability distribution has p =...Ch. 6.3 - Adults Who Smoke. Although studies continue to...Ch. 6.3 - Americans Who Believe Global Warming Is Occurring....Ch. 6.3 - Playing Video Games. Suppose that of those...Ch. 6.3 - Visitors to Rocky Mountain National Park. Rocky...Ch. 6.4 - Consider the following exponential probability...Ch. 6.4 - 33. Consider the following exponential probability...Ch. 6.4 - 34. Battery life between charges for the Motorola...Ch. 6.4 - 35. The time between arrivals of vehicles at a...Ch. 6.4 - 36. Comcast Corporation is the largest cable...Ch. 6.4 - 37. Wendy’s restaurant has been recognized for...Ch. 6.4 - 38. The Boston Fire Department receives 911 calls...Ch. 6 - 39. A business executive, transferred from Chicago...Ch. 6 - NCAA Scholarships. The NCAA estimates that the...Ch. 6 - Production Defects. Motorola used the normal...Ch. 6 - Bringing Items to a Pawnshop. One indicator of the...Ch. 6 - Amazon Alexa App Downloads. Alexa is the popular...Ch. 6 - Service Contract Offer. Ward Doering Auto Sales is...Ch. 6 - Wedding Costs. The XO Group Inc. conducted a 2015...Ch. 6 - College Admissions Test Scores. Assume that the...Ch. 6 - College Graduates Starting Salaries. According to...Ch. 6 - 48. A machine fills containers with a particular...Ch. 6 - Multiple-Choice Exam. Consider a multiple-choice...Ch. 6 - Playing Blackjack. A blackjack player at a Las...Ch. 6 - Mean Time Between Failures. The mean time between...Ch. 6 - The website for the Bed and Breakfast Inns of...Ch. 6 - Do you dislike waiting in line? Supermarket chain...Ch. 6 - Prob. 54SE
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