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1) For the most recent year available the mean annual cost to attend a private university in the US was $26,889. Assume the distribution of annual costs follows a normal probability distribution and the standard deviation is $4,500. 95% of all students at private universities pay less than what amount?
2) According to the Insurance Institute of America, a family of four spends between $400 and $3800 per year on all types of insurance. Suppose the money spent is uniformly distributed between these amounts.
A) What is the mean amount spent on insurance?
B) What is the standard deviation of the amount spent?
C) If we select a family at random, what is the probability they spend less than $2,000 per year on insurance per year?
D) What is the probability a family spends more than $3,000 per year?
Multiple choice questions based on regression - multiple coefficient of determination
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The firm has already decided that any sample mean below 78 or above 82 will signal the workers that the process is not working properly.
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At a board meeting of 20 businessmen, all of whom wear ties, what is the probability that:
Use expected collision claim amount to find out the collision insurance premium that would permit the company to break even on collision portion of policy.
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