Distribution of loss from fire and skewed distribution

Reference no: EM1397552

Let X be the monetary value of the loss from a house fire (in dollars.) Insurance companies assume that in the entire population of homeowners, the mean loss from fire is $400 and the standard deviation is $300. They also know that the distribution of loss from fire has a skewed distribution; many have $0.00 losses and a few have large losses. If the company sells 10,000 insurance policies, what is the change that the AVERAGE loss is greater than $410?

Reference no: EM1397552

Questions Cloud

Information about anova and least squares : What kind of correlation do you expect to find between annual income and amount spent on car? Will it be positive or negative?

Average rating of service for all customers : Suppose 100 randomly selected customers were asked to rate a particular service they recently had on a scale of 0 to 10. The sample mean rating was found to be 7.3.

Explain risk response strategy : Risk Response Strategy. Develop a risk response strategy with both primary and secondary (contingency) actions for each of the top 5 risks. Offer supporting rationale. Comprise nominated action owners for each action.

One factor anova-difference in designs : A manufacturer of batteries is considering three new battery designs. An attempt was made to determine whether the mean lifetime in hours is the same for each of the three designs.

Distribution of loss from fire and skewed distribution : They also know that the distribution of loss from fire has a skewed distribution; many have $0.00 losses and a few have large losses.

What is the theoretical yield and percent yield : What is the theoretical yield and percent yield for this reaction under the given conditions?

Define the various directions communication flows : Define the various directions communication flows through an organization's formal network and give an example of each one.

Consideration of a random sample of the population : If the mailing list can be considered a random sample of the population, what is the chance that at least 1245 Macintosh users will receive the flyer?

Coefficient of determination between hours studied : For one of the first statistics exam, the coefficient of determination between hours studied and the grade earned was 80 percent. The standard error of estimate was 10.

User Account

All Pages