Question 3Assume the number of physical damage losses for houses as a result of hurricane Irma in Barbuda is normally distributed with a mean of 4000 and a standard deviation of 800. What is the probability that:More than 4160 losses will occurBetween 3680 and 4320 losses will occurBetween 4320 and 4480 losses will occurUnder the terms of an out-of-court settlement, a company must pay the plaintiff $400,000 per year for the next 5 years, with the first payment being made now. The company plans to create a funded claims reserve, and the reserve assets can earn 8% annual return. What amount is needed to fully fund the reserve today

Given that X~N( μ = 4000 , ? = 800 ) μ = 4000 , ? = 800 Z-score =(x-μ)/? Note: According to…

Answered: Assume the number of physical damage…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question 3

Assume the number of physical damage losses for houses as a result of hurricane Irma in Barbuda is normally distributed with a mean of 4000 and a standard deviation of 800. What is the probability that:
1. More than 4160 losses will occur
2. Between 3680 and 4320 losses will occur
3. Between 4320 and 4480 losses will occur
Under the terms of an out-of-court settlement, a company must pay the plaintiff $400,000 per year for the next 5 years, with the first payment being made now. The company plans to create a funded claims reserve, and the reserve assets can earn 8% annual return. What amount is needed to fully fund the reserve today

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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