1. An actuary wants to determine a new estimate for the average cost, to her insurance company,...
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1. An actuary wants to determine a new estimate for the average cost, to her insurance company, of the vehicles that are involved in accidents and are considered total losses.
Based on the previous sets of data, the actuary has estimated that the standard deviation of future samples of such vehicles, per totaled vehicle, is $4050. How many totaled vehicles should the actuary sample to make sure, with a probability of at least 0.95, that her estimate is only within $300 of the actual mean of the population of all totaled vehicles insured by her company?
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Related Book For
Fundamentals Of Probability With Stochastic Processes
ISBN: 9780429856273
4th Edition
Authors: Saeed Ghahramani
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