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Please write fully answer to all 5 questions, thank you State Farm surance studi

ID: 3203018 • Letter: P

Question

Please write fully answer to all 5 questions, thank you

State Farm surance studie how that in Colorad 65% of the auto insurance aims submitte d for property damage ubmitted by mi under 25 yea of age, suppose (a) Let r be the number of claims made by males under age 25, Make a histogram for the r-distribution probabilities. b) What e probability that two or more are made by male under age 25 Use 3 decimal places (c) What is the expected number of claims made by males under age 25? What is the standard deviation of the r-probability distribution? (Use 2 decirnal places.) property damage nvolving automobile are selected at random

Explanation / Answer

n = 368 , mean = 1505 , sigma = 250

For 90% confidence interval z value = 1.645

Limit = mean + /- z * sigma/ sqrt(n)

Lower limit = 1505 - 1.645 * ( 250 / sqrt(368))

= 1483.56

Upper limit = 1505 +1.645 * ( 250 / sqrt(368))

= 1526.43

For 99% confidence interval z value = 2.576

Lower limit = 1505 - 2.576 * ( 250 / sqrt(368))

= 1471.42

Upper limit = 1505 +2.576 * ( 250 / sqrt(368))

= 1538.57

a) mean = (1.9 + 2.3 + 5.7 + 5.2 + 1.9 + 8.9 + 3.9 + 6.9)/8

= 4.59

Median

1.9 1.9 2.3 3.9 5.2 5.7 6.9 8.9

Median = 3.9 + 5.2 / 2 = 4.55

Mode = 1.9

b) Standard deviation = [( 1.9 - 4.59 ) ^2 + ( 1.9 - 4.59 ) ^2 + ( 2.3 - 4.59 ) ^2 + ( 3.9 - 4.59 ) ^2 +( 5.2 - 4.59 ) ^2 +   (5.7 - 4.59 ) ^2 + ( 6.9 - 4.59 ) ^2 + ( 8.9 - 4.59 ) ^2] / 7

= 6.52

CV = (Std. deviation / mean) * 100%

= (6.52 / 4.59) * 100%

= 1.42%

Range

Smallest value = 1.9 , Largest value = 8.9

Range = largest - smallest = 8.9 - 1.9 = 7.0