State Farm Insurance studies show that in Colorado, 45% of the auto insurance cl

Question

State Farm Insurance studies show that in Colorado, 45% of the auto insurance claims submitted for property damage were submitted by males under 25 years of age. Suppose 10property damage claims involving automobiles are selected at random.

(a) Let r be the number of claims made by males under age 25. Make a histogram for the r-distribution probabilities.

(b) What is the probability that four or more claims are made by males under age 25? (Use 3 decimal places.)


(c) What is the expected number of claims made by males under age 25? What is the standard deviation of the r-probability distribution? (Use 2 decimal places.)

Explanation / Answer

Solution:- GIven that p = 0.45 , n = 10

a) option A.

b) P(X >= 4) = 0.734

c) = n*p = 10*0.45 = 4.5

   = sqrt(n*p*q) = sqrt(10*0.45*0.55) = 1.57

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