Question
Can you help me with the following problems and explaining the solutions please? Thank you. Let X be the random variable representing the claim amount
Can you help me with the following problems and explaining the solutions please?
Thank you.
Let X be the random variable representing the claim amount for flooding damage from house insurance policies of bungalow type houses. Past claims show evidence that X is a normally distributed random variable with an average claim amount of = 21000 euro and a standard deviation of = 4000 euro, i.e. X~Normal( 21000 , 40002).
a) Find the z-scores relating to the following claim amounts;
i) 28331 :z =[i](2 dec places)
ii) 24641 :z =[ii](2 dec places)
iii) 18705 :z =[iii](2 dec places)
iv) 30439 :z =[iv](2 dec places)
b) Find the probability that for a randomly selected claim, the claim amount will be for less than 28331 euro.[b](4 dec places)
c) Find the probability that for a randomly selected claim, the claim amount will be for more than 24641 euro.[c](4 dec places)
d) Find the probability that for a randomly selected claim, the claim amount will be for between 18705 euro and 30439 euro.[d](4 dec places)
e) An insurance company notes that for 2.5% of claims the claim amount is above K euro, calculate K.[e](0 dec places)
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