Answer:
y₀.₉₅ = 3659
Step-by-step explanation:
P( no accident ) = 0.8
P( one accident ) = 0
deductible = 500
mean = 3000
<u>Determine the 95th percentile of the insurance company payout </u>
Assuming : y =company payout , x =amount of loss incurred due to accident
Then :
P( x < 500 ) = 0.2 ( 1 - e^-500/3000)
= 0.2 ( 1 - e^-1/6 )
95th percentile =
= P( y < y₀.₉₅ ) 0.95
P( y = 0 ) = 0.8 + 0.2 ( 1 - e^-1/6 ) = 0.8307
attached below is the remainder of the solution
Answer:
99.38%
Step-by-step explanation:
We have that the mean (m) is equal to 124, the standard deviation (sd) 6.4 and the sample size (n) = 64
They ask us for P (x <126)
For this, the first thing is to calculate z, which is given by the following equation:
z = (x - m) / (sd / (n ^ 1/2))
We have all these values, replacing we have:
z = (126 - 124) / (6.4 / (64 ^ 1/2))
z = 2.5
With the normal distribution table (attached), we have that at that value, the probability is:
P (z <2.5) = 0.9938
The probability is 99.38%
