Answer:
the approximate probability that the insurance company will have claims exceeding the premiums collected is
Step-by-step explanation:
The probability of the density function of the total claim amount for the health insurance policy is given as :
Thus, the expected total claim amount = 1000
The variance of the total claim amount
However; the premium for the policy is set at the expected total claim amount plus 100. i.e (1000+100) = 1100
To determine the approximate probability that the insurance company will have claims exceeding the premiums collected if 100 policies are sold; we have :
P(X > 1100 n )
where n = numbers of premium sold
Therefore: the approximate probability that the insurance company will have claims exceeding the premiums collected is
Answer:
47.5%
Step-by-step explanation:
Find the z-scores:
z = (x − μ) / σ
z₁ = (300 − 400) / 50 = -2
z₂ = (400 − 400) / 50 = 0
300 is 2 standard deviations below the mean, and 400 is 0 standard deviations from the mean.
From the empirical rule, 95% of a normal distribution is between -2 and +2 standard deviations. Since normal distributions are symmetrical, that means half of that is between -2 and 0 standard deviations.
95% / 2 = 47.5%
Answer:
it's can't be factorise because there is nothing common in them simply.