Two measures of central tendency

Assignment Help Basic Statistics
Reference no: EM1391891

You are a manager working for an insurance company. Your job entails processing individual claims filed by policyholders. In general, few claims are expensive. Each quarter, you compile a report summarizing key claim statistics, such as the number of claims submitted, the average cost per claim, and the total cost of submitted claims. In the last quarter's report, you notice a large difference between the mean and the median claim cost, the mean cost being much higher than the median cost. What do you attribute this difference to? Do you think the claims data is normally distributed? If so, why? If not, what distribution might best describe the data and why? Given the large difference between the two measures of central tendency, which of the two would you rely on in describing the average claim cost and why?

Reference no: EM1391891

Questions Cloud

Bipotential progenitor of foregut endoderm : A pluripotent cell has been placed into specific culture situations to commit into an early bipotential progenitor of foregut endoderm. Further differentiation could send it to become a hepatocyte or a pancreatic cell.
Normal distribution and six sigma : What then is the probability that a shaft will be acceptable? Suppose that the diameter of the shaft is a random variable that is Normally distributed.
Hscs for the treatment of heart attack : The fist clinical trial that assess stem cells in transplantation setting is using HSCs for the treatment of heart attack. Why are HSCs used and not cardiac stem cells?
Hydro-luxes require six labor hours : Hydro-Luxes require six labor hours, the profit margin on this product should be $96 less. Who is right and why?
Two measures of central tendency : Given the large difference between the two measures of central tendency, which of the two would you rely on in describing the average claim cost and why?
Explain impact of event on field of public safety : Explain the impact of event on field of public safety and how it affected development of codes, practices, beliefs, and research.
Injecting the cells into a c57bl6 blastocyst : Assume you have isolated C57BL6 trophoblast stem cells and have propagated them on MEFs with heparin. To test for the success of your culture protocol, you are injecting the cells into a C57BL6 blastocyst.
Explain social constructivist approaches to leadership : Analyze Grint's support for why it is helpful to study Constitutive/Social Constructivist approaches to leadership and give your critical assessment of why case he presents is compelling or not.
Probability related to packaging equipment company : Pretend you are in charge of a packaging equipment company that is filling boxes of cereal. From past experience we know the population's mean weight of the filled boxes is 300 grams (and we know the distribution of grams is approximately normal).

Reviews

Write a Review

Basic Statistics Questions & Answers

  Sampling design for study

Such things as historical documents, newspaper reports, TV and radio broadcasts, when used in research, represents

  Find p65-65th percentile

Suppose adults have basically distributed IQ scores with a mean of 100 and an SD of 15. Find P65, the 65th percentile. Use the Z table.

  Determining class with greatest number of data values

Determine the class with the greatest number of data values.

  Finding test of hypothesis on each of regression coefficient

Carry out a test of hypothesis on each of regression coefficients. Could you delete any of the variables?

  Anova procedure for data

An ANOVA procedure is used for data that was obtained from four sample groups each comprised of five observations. The degrees of freedom for the critical value of F are:

  Average precipitation and normal distribution

Average Precipitation For the first 7 months of the year, the average precipitation in Toledo, Ohio, is 19.32 inches. If the average precipitation is normally distributed with a standard deviation of 2.44 inches, find these probabilities.

  Analysis of data sets assignment

Analysis of data sets assignment

  Confidence interval and true mean

A food snack manufacturer samples 13 bags of pretzels off the assembly line and weighs their contents. If the sample mean is 14.7 oz. and the sample standard deviation is 0.50 oz., find the 95% confidence interval of the true mean.

  Normally distributed population mean

If 50 cups of coffee were measured, what is the probability that: The sample mean per cup is less than 7.8 ounces?

  Expected value of the sample mean difference

A random sample of 50 female CFO's and a random sample of 40 male CFO's are selected. Find the expected value of the sample mean difference.

  Interpreting the meaning of p-value

At 0.01 level of significance, is there evidence that mean price is higher at Whole Foods Market than at Fairyway supermarket? Interpret the meaning of p-value in (i).

  Performing hypothesis testing

Looking at the data, the manufacturer is incorrect in its label claim. Perform hypothesis testing to prove or disprove it. Is the manufacturer correct in its label claim? Explain.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd