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You are given the following information about a hospitalization insurance. The insurance will reimburse 100% of room charges, and 80% of other charges. The mean
You are given the following information about a hospitalization insurance. The insurance will reimburse 100% of room charges, and 80% of other charges. The mean and the standard deviation of the room charges are 1,000 and 500, respectively. The mean and standard deviation of other charges are 500 and 300, respectively. The covariance between the room charges and other charges is 100,000. Calculate the ratio of the mean to the standard deviation for the reimbursement. Possible Answers A 1.85 B 2.05 C 2.25 D 2.45 E 2.65 You are given the following information about a hospitalization insurance. The insurance will reimburse 100% of room charges, and 80% of other charges. The mean and the standard deviation of the room charges are 1,000 and 500, respectively. The mean and standard deviation of other charges are 500 and 300, respectively. The covariance between the room charges and other charges is 100,000. Calculate the ratio of the mean to the standard deviation for the reimbursement. Possible Answers A 1.85 B 2.05 C 2.25 D 2.45 E 2.65
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