Out of 5000 policies for cell phones, a company received 585 claims. The average amount paid on the claims was $80. If the annua
1 answer:
Answer:
the customer's expected value of the cellphone insurance policy is -$38.64. (Option C)
Step-by-step explanation:
Based on the data given, 585/5000 or 11.7% of the total number policies have claims. This means, 100% - 11.7% = 88.3% have not claimed their cellphone insurance.
- In the chart, we are focusing on the customer's end because the question is asking for the customer's expected value↓
- In the chart, if the customer has no claims, then he losses his $48. However, if he has claims, he gains $32 since $80 - 48 = $32. Also, based on the data given by the company, 88.30% have no claims and only 11.7% of the customers have claims.
- To get the expected value, we will multiply -48 and 88.3% as well as 32 and 11.7%. 48 is negative because it indicates a loss.
Therefore, your Answer is -38.64
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Answer:
48; 14.90 or 14.9
Step-by-step explanation:
First you have to take the mean of the data set.
In order to do this, we take the sum of all of the data points and then divide them by the number of values like so...
The answer to this is 33.1.
Now we have to find the value furthest from this value. In order to do this, we are going to take the highest (48) and the lowest value(23). Then we compare their distance from 33.1. After this, we can tell that 48 is further from 33.1 than 23 is.
Then for the second part, 48-33.1 = 14.90 and that is how far the value is from the mean.