Question
The mean annual loss from fire for homeowners in New York State is = $220 with a standard deviation of = $140. Suppose we randomly
The mean annual loss from fire for homeowners in New York State is = $220 with a standard deviation of = $140. Suppose we randomly select 144 New York homeowners and measure the fire loss for each homeowner. Let M be the random variable representing the mean fire loss of the 144 selected homeowners. Let T be the random variable representing the total amount (sum) of the fire losses for the 144 selected homeowners a) What theorem will let us treat T and M as approximately normal random variables?Law of Large Numbers301 Theorem Monte Carlo TheoremConvolution TheoremCentral Limit TheoremChebychev's Theorem b) What is the expected value of T? c) What is the standard deviation of T? d) What is the approximate probability that T is greater than 30000? e) What is the 90th percentile of the approximate distribution of T? f) What is the expected value of M? g) What is the standard deviation of M? h) What is the approximate probability M is greater than 225?
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