An automobile insurer has found that repair claims are Normally distributed with a mean of $820 and a standard deviation of $770. Round your z-scores to 2 decimal places, and give your answer to at least 4 decimal places. a) Find the probability that a single claim, chosen at random, will be less than $780. ANSWER: (b) Now suppose that the next 50 claims can be regarded as a random sample from the long-run claims process. Find the probability that the average i of the 50 claims is smaller than $780. ANSWER: (c) If a sample larger than 50 claims is considered, there would be chance of getting a sample with an average smaller then $780. (NOTE: Enter "LESS", "MORE" or "AN EQUAL" without the quotes.)

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An automobile insurer has found that repair claims are Normally distributed with a mean of $820 and a standard deviation of $770.
Round your z-scores to 2 decimal places, and give your answer to at least 4 decimal places.
(a) Find the probability that a single claim, chosen at random, will be less than $780.
ANSWER:
(b) Now suppose that the next 50 claims can be regarded as a random sample from the long-run claims process. Find the probability that the average
of the 50 claims is smaller than $780.
ANSWER:
(c) If a sample larger than 50 claims is considered, there would be
chance of getting a sample with an average smaller then $780.
(NOTE: Enter "LESS", "MORE" or "AN EQUAL" without the quotes.)
Transcribed Image Text:An automobile insurer has found that repair claims are Normally distributed with a mean of $820 and a standard deviation of $770. Round your z-scores to 2 decimal places, and give your answer to at least 4 decimal places. (a) Find the probability that a single claim, chosen at random, will be less than $780. ANSWER: (b) Now suppose that the next 50 claims can be regarded as a random sample from the long-run claims process. Find the probability that the average of the 50 claims is smaller than $780. ANSWER: (c) If a sample larger than 50 claims is considered, there would be chance of getting a sample with an average smaller then $780. (NOTE: Enter "LESS", "MORE" or "AN EQUAL" without the quotes.)
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