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Mathematics, 17.04.2020 21:15 sherlock19
Your insurance company has converged for three types of cars. The annual cost for each type of cars can be modeled using Gaussian (Normal) distribution, with the following parameters: (Discussions allowed!)
Car type 1 Mean=$520 and Standard Deviation=$110
Car type 2 Mean=$720 and Standard Deviation=$170
Car type 3 Mean=$470 and Standard Deviation=$80
Use Random number generator and simulate 1000 long columns, for each of the three cases. Example: for the Car type 1, use Number of variables=1, Number of random numbers=1000, Distribution=Normal, Mean=520 and Standard deviation=110, and leave random Seed empty.
Next: use either sorting to construct the appropriate histogram or rule of thumb to answer the questions:
What is approximate probability that Car Type 2 has annual cost less than $550?
a. Between 1% and 3%
b. Between 27% and 39%
c. Between 55% and 70%
d. None of these
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Your insurance company has converged for three types of cars. The annual cost for each type of cars...
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