Answered step by step
Verified Expert Solution
Question
1 Approved Answer
JUST THE ANSWER IS FINE NO WORKING 18) The auto insurance company usually pays the claim by two parts: body injured and property damage. The
JUST THE ANSWER IS FINE NO WORKING
18) The auto insurance company usually pays the claim by two parts: body injured and property damage. The cost for body injured follows a normal distribution with mean 500 and standard deviation 20. The cost for property damage follows another normal distribution with mean 200 and standard deviation 10. These two costs are independent. Assume that the total cost of two parts also follow normal distribution. What is the number x that the probability of total cost of the claim is less than x will be 0.9?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started