Question
1. An insurance company sells homeowner's insurance to compensate homeowners in case of damage to their home. Suppose we assume that the probability distribution of
1. An insurance company sells homeowner's insurance to compensate homeowners in case of damage to their home. Suppose we assume that the probability distribution of x = insurance company's payout on all policies is severely right-skewed with a mean of $4,750 and a standard deviation of $18,839.7850.
Consider a random sample of 9 homeowners who own this policy. Find the mean and standard deviation of the average insurance payout on these 9 policies.
Mean (of x)=
Standard deviation (to 4 decimal places)=
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Numerical Analysis
Authors: Richard L. Burden, J. Douglas Faires
9th edition
538733519, 978-1133169338, 1133169333, 978-0538733519
