ctuaries can use histograms to analyze the frequency of submitted insurance claims after mers over a particular period of time. The information in the table on the left below lists the number of flood insurance claims submitted and average paid flood claim amounts as a result of storms in 2005. An average paid claim is the average of all the flood claims paid by the insurance companies. Read the claims in the table, then answer the questions below. Costs and Claims of 2005 Storms 160,000" 130,000- 100,000 Category at Landfall Much of New Orleans, LA, was flooded after levees bruke following Hurricane Katrina in August 2005. 2005 Storm Average Paid Hamber of Flood Claims Flood Clafm Hurricane Dennis 3 3,332 $26,687 Number of Flood Claims 10,000 9,000- 8,000- 7,000 6,000 5,000 4,000- Hurricane Katrina 3 158,760 $94,750 3,000 Hurricane Rita 3 8,602 $46,089 2,000- Tropical Storm Tammy not applicable 3,600 $10,213 1,000- Hurricane Wilma 8,474 $36,126. 0 0 Under $21,000- $31,000- $41,000- Over $20,000 $30,000 $40,000 $50,000 $50,000 Questions: Average Paid Flood Claim 1. Complete the histogram using the information provided in the table. 2. Which type of information provided is a "mean" and why is it useful? "Average raid Flood claim" It is useful because it gives us an average amount the insurance companies used on TK # of Flood claims. We will be able to know tv amount of any road claims beard on the cust. payi 3. What was the total amount paid out for Tropical Storm Tammy? 4. Based on this information, would you expect that a tropical storm always results in fewer flood claims than a hurricane? Why or why not? 5. You're an actuary; How would you advise an insurance company about what they should expect to pay during a Category 3 hurricane if they're expecting to have claims on 200,000 olicies? (Hint: use the information from the table above, come up with an average claim amount to help answer this question)