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Mathematics, 01.12.2020 14:10 micahsocool23
An automobile insurer has found that repair claims are normally distributed with a mean of $780 and a standard deviation of $730.
(a) Find the probability that a single claim, chosen at random, will be less than $730.
(b) Now suppose that the next 80 claims can be regarded as a random sample from the long-run claims process. Find the probability that the average x¯ of the 80 claims is smaller than $730.
(c) If a sample larger than 80 claims is considered, there would be chance of getting a sample with an average smaller then $730. (NOTE: Enter ''LESS'', ''MORE'' or ''AN EQUAL'' without the quotes.)
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