Question
Claims arrive at random times to an insurance company where you work as branch manager. The daily amount of claims is normally distributed with a
Claims arrive at random times to an insurance company where you work as
branch manager. The daily amount of claims is normally distributed with a mean
of $1570 and standard deviation $450. Total claims on different days each has
this distribution , and they are probabilistically independent of one another.
a. Find the probability that the amount of total claims over a period of 100
days is at least $150,000
b. If the company receives premiums totaling $165,000, find the probability
that the company will net at least $10,000 for the 100-day period.
Please help me answer these questions. Do not upload in a handwritten format. I need clear explanation. Thank you
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