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Vikentia [17]
3 years ago
9

In order to set premiums at profitable levels, insurance companies must estimate how much they will have to pay in claims on car

s of each make and model, based on the value of the car and how much damage it sustains in accidents. Let C be a random variable that represents the cost of a randomly selected car of one model to the insurance company. The probability distribution of C is given below.
C

$0

$500

$1000

$2000

P(C)

0.70

0.15

0.11

0.04

1. The expected value of C is =



2. The standard deviation of C is =
Mathematics
1 answer:
Alex73 [517]3 years ago
8 0

I hope someone sloves your problem :)

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Answer:

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Explanation:

The following multiple choice responses are provided to complete the question:

A) The Pearson correlation results should be reported because it shows a stronger correlation with a smaller p-value (more significant).

B) The Pearson correlation results should be reported because the two variables are normally distributed.

C) The Spearman correlation results should be reported because at least one of the variables does not meet the distribution assumption required to use Pearson correlation.

D) The Spearman correlation results should be reported because the p-value is closer to 0.0556.

Further Explanation:

A count variable is discrete because it consists of non-negative integers. The number of polyps variable is therefore a count variable and will most likely not be normally distributed.  Normality of variables is one of the assumptions required to use Pearson correlation, however, Spearman's correlation does not rest upon an assumption of normality. Therefore, the Spearman correlation would be more appropriate to report because at least one of the variables does not meet the distribution assumption required to use Pearson correlation.

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