Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. your insurance company has converged for three typ

Your insurance company has converged for three types of cars. The annual cost for each type...

70.2K

Verified Solution

Question

Statistics

Your insurance company has converged for three types of cars.The annual cost for each type of cars can be modeled using Gaussian(Normal) distribution, with the following parameters: (Discussionsallowed!)

  • Car type 1 Mean=$520 and Standard Deviation=$110
  • Car type 2 Mean=$720 and Standard Deviation=$170
  • Car type 3 Mean=$470 and Standard Deviation=$80

Use Random number generator and simulate 1000 long columns, foreach of the three cases. Example: for the Car type 1, use Number ofvariables=1, Number of random numbers=1000, Distribution=Normal,Mean=520 and Standard deviation=110, and leave random Seedempty.

Next: use either sorting to construct the appropriate histogramor rule of thumb to answer the questions:

13. What is approximate probability that Car Type 1 hasannual cost less than $550?

  • a. Between 10% and 13%
  • b. Between 23% and 29%
  • c. Between 55% and 70%
  • d. None of these

14. Which of the three types of cars is most likely tocost more than $1000?

  • a. Type 1
  • b. Type 2
  • c. Type 3

15. For which of the three types we have the highestaverage cost?

  • a. Type 1
  • b. Type 2
  • c. Type 3

Answer & Explanation Solved by verified expert
4.2 Ratings (862 Votes)
The random number of car type 1 is generated in excel byfollowing these stepsStep 1 DATA Data Analysis Random number    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Geometry
1.2K views

6 4 2 f x 6 4 2 4 6 4 6

Accounting
1.2K views

Lead Time in a Doctor's OfficeMarcus Simmons caught the flu and needed to see...

Finance
1.2K views

Sheila Goodman recently received her MBA from the Harvard Business School. She has joined the family...

Finance
1.2K views

A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that...

Accounting
1.2K views

Hearty Soup Co. uses a process cost system to record the costs of processing soup, which...

Physics
1.2K views

How much power is used by a contact lens heating unit that draws 0 051...

Geometry
1.2K views

Find all x in R that are mapped into the zero vector by the transformation...

Basic Math
1.2K views

This question 1 point s possible K The professor assigns grades in the modern poetry...

Basic Math
1.2K views

32) Irene is on the 18th floor of a hotel. Her car is parked in...

Algebra
1.2K views

Use the Pythagorean Theorem to determine the value of x and the measurements of all...

Accounting
1.2K views

Foss company bought land with a vacant building for $400,000. Foss will use the building...

Accounting
1.2K views

Cash Payback Period Primera Banco is evaluating two capital investment proposals for a drive-up ATM...