State Farm Insurance studies show that in Colorado, 65% of the auto insurance claims submitted for property damage were submitted by males under 25 years of age. Suppose 8 property damage claims involving automobiles are selected at random. Let r be the number of claims made by males under age 25. Make a histogram for the r-distribution probabilities
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(a) What is the
(b) What is the expected number of claims made by males under age 25? What is the standard deviation of the r-probability distribution? (Round your standard deviation to two decimal places.)
population mean
population standard deviation
- Suppose that a consumer cannot vary hours of work as he or she chooses. In particular, he or she must choose between working q hours and not working at all, where q > 0. Suppose that dividend income is zero, and that the consumer pays a tax T if he or she works, and receives a benefit b when not working, interpreted as an unemployment insurance payment. a. If the wage rate increases, how does this affect the consumer’s hours of work? What does this have to say about what we would observe about the behavior of actual consumers when wages change? Explained also with the graph b. Suppose that the unemployment insurance benefit increases. How will this affect hours of work? Explain the implications of this for unemployment insurance programs. Explained also with the graphSuppose a company charges a premium of $150 per year for an insurance policy for storm damage to roofs. Actuarial studies show that in case of a storm, the insurance company will pay out an average of $8000 for damage to a composition shingle roof and an average of $12,000 for damage to a shake roof. They also determine that out of every 10,000 policies, there are 7 claims per year made on composition shingle roofs and 11 claims per year made on shake roofs. What is the company’s expected value (i.e., expected profit) per year of a storm insurance policy? What annual profit can the company expect if it issues 1000 such policies? Determine the probability of a composition shingle roof claim out of 10,000 = ______ Determine the probability of a shake roof claim out of 10,000 = ______ How many claims are made out of 10,000? = _______ What is the probability of no claims out of 10,000? = _______ How much does each shingle roof claim cost the company, don’t forget each person pays $150…Price($) W Price ($) A $3.98 $3.99 $2.28 $3.49 $3.08 $5.29 $0.58 $0.60 $2.00 $1.77 $8.98 $10.49 $3.94 $3.99 $3.50 $5.49 $1.50 $0.99 $2.18 $2.29 $3.88 $3.19 $2.78 $2.99 $2.12 $1.00 $0.88 $0.59 $2.64 $2.79 $0.98 $1.99 $0.98 $1.00 $0.75 $1.00 $0.28 $0.29 $2.98 $3.99 $2.82 $2.79 $0.94 $1.19 $1.47 $1.25 $5.48 $4.99 $3.98 $3.99 $3.48 $3.79 $1.08 $1.89 $1.08 $1.00 $1.00 $1.50 $0.58 $0.50 Trying to determine if A is more expenive than W. Test Your Claim for Using a 2 Sample Hypothesis Test with a 5% Level of Significance. 1. Define µ1 and µ2 2. Determine the null and alternate hypothesis and identify the claim. 3. Using technology find the test statistic and interpret it. 4. Make a decision of rejecting or failing to reject the null hypothesis. You can use the Classical Approach (using critical values) or the P-value Approach but you must thoroughly explain which method you used and walk me through your steps. 5. State your…
- x y 1.0 10.0 2.0 9.0 3.0 8.0 4.0 7.0 5.0 6.0 6.0 5.0 7.0 4.0 8.0 3.0 9.0 2.0 10.0 1.0 y 1 2 3 4 5 6 7 8 9 10 11 x 1 2 3 4 5 6 7 8 9 10 11 0 Figure 1 u v 1.0 7.7 2.0 5.4 3.0 10.3 4.0 6.3 5.0 2.2 6.0 4.9 7.0 8.7 8.0 3.5 9.0 9.4 10.0 6.9 v 1 2 3 4 5 6 7 8 9 10 11 u 1 2 3 4 5 6 7 8 9 10 11 0 Figure 2 w t 1.0 3.1 2.0 4.3 3.0 3.6 4.0 5.3 5.0 4.7 6.0 7.0 7.0 6.2 8.0 7.6 9.0 6.9 10.0 8.4 t 1 2 3 4 5 6 7 8 9 10 11 w 1 2 3 4 5 6 7 8 9 10 11 0 Figure 3 m n 1.0 7.2 2.0 9.1 3.0 7.1 4.0 5.4 5.0 7.7 6.0 5.0 7.0 4.3 8.0 6.7 9.0 6.1 10.0 4.4 n 1 2 3 4 5 6 7 8 9 10 11 m 1…A manufacturer of exercise equipment knows that 15% of their products aredefective. They also know that only 35% of their customers will actually use the equipment in the first year after it is purchased. If there is a one-year warranty on the equipment, what proportion of the customers will actually make a valid warranty claim?Number of Girls x P(x) 0 0.003 1 0.021 2 0.118 3 0.208 4 0.300 5 0.208 6 0.118 7 0.021 8 0.003
- Resistors labeled as 100 Ω are purchased from two different vendors. The specification for this type of resistor is that its actual resistance be within 5% of its labeled resistance. In a sample of 180 resistors from vendor A, 149 of them met the specification. In a sample of 270 resistors purchased from vendor B, 233 of them met the specification. Vendor A is the current supplier, but if the data demonstrate convincingly that a greater proportion of the resistors from vendor B meet the specification, a change will be made. P-value?Average Debt of College Graduates Kiplinger’s listed the top 100 public colleges based on many factors. From that list, here is the average debt at graduation for various schools in four selected states. At α=0.05, can it be concluded that the average debt at graduation differs for these four states? New York Virginia California Pennsylvania 18,700 12,859 16,733 26,800 17,375 21,678 14,291 25,179 20,000 17,395 14,323 19,645 52,591 16,000 17,107 20,931 24,415 18,547 15,155 20,148 a.State the null hypotheses H0: u1=u2=u3=u4/ CLAIM OR NOT CLAIM H1: At least one mean is different than the others/ CLAIM OR NOT CLAIM b.Determine the p-valuec. Make the decisionsd. Summarize the resultsDegrees of Freedom 0.995 0.99 0.975 0.95 0.90 0.10 0.05 0.025 0.01 0.005 1 - - 0.001 0.004 0.016 2.706 3.841 5.024 6.635 7.879 2 0.010 0.020 0.051 0.103 0.211 4.605 5.991 7.378 9.210 10.597 3 0.072 0.115 0.216 0.352 0.584 6.251 7.815 9.348 11.345 12.838 4 0.207 0.297 0.484 0.711 1.064 7.779 9.488 11.143 13.277 14.860 5 0.412 0.554 0.831 1.145 1.610 9.236 11.071 12.833 15.086 16.750 6 0.676 0.872 1.237 1.635 2.204 10.645 12.592 14.449 16.812 18.548 7 0.989 1.239 1.690 2.167 2.833 12.017 14.067 16.013 18.475 20.278 8 1.344 1.646 2.180 2.733 3.490 13.362 15.507 17.535 20.090 21.955 9 1.735 2.088 2.700 3.325 4.168 14.684 16.919 19.023 21.666 23.589 10 2.156 2.558 3.247 3.940 4.865 15.987 18.307 20.483 23.209 25.188 Conduct the…
- Resistors labeled as 100 Ω are purchased from two different vendors. The specification for this type of resistor is that its actual resistance be within 5% of its labeled resistance. In a sample of 180 resistors from vendor A, 150 of them met the specification. In a sample of 270 resistors purchased from vendor B, 233 of them met the specification. Vendor A is the current supplier, but if the data demonstrate convincingly that a greater proportion of the resistors from vendor B meet the specification, a change will be made. a) State the appropriate null and alternate hypotheses. b) Find the P-value. c) Should a change be made?Date Ford stock Price y Japanese Yen x1 Deutsche Mark x2 S&P500 x3 1992.1 38.3 133.2 1.64 407.36 1992.2 45.2 125.5 1.53 408.21 1992.3 39.4 119.2 1.41 418.48 1992.4 42.7 124.7 1.61 435.64 1993.1 52.3 121.3 1.61 450.16 1993.2 55.3 110.1 1.69 447.29 1993.3 64.7 105.2 1.62 459.24 1993.4 58.1 111.3 1.73 465.34 1994.1 59.9 103.4 1.76 463.21 1994.2 27.6 99.5 1.6 454.83 1994.3 27.5 98.5 1.55 466.96 1994.4 26.3 99.6 1.38 455.19 1995.1 29.5 89.4 1.39 493.15 1995.2 31.2 84.6 1.42 539.23 1995.3 28.7 98.2 1.43 578.32 1995.4 28.9 102.4 1.48 614.57 1996.1 34.8 106.3 1.52 647.05 1996.2 36.2 109.8 1.58 668.53 1996.3 32.1 110.5 1.61 672.92 1996.4 33.9 112.8 1.69 689.3522 - It is desired to investigate the difference between the satisfaction rates of the customers in different hotels of the same establishment in a region. 1000 out of 1200 randomly selected customers in Hotel A and 1200 of 1500 randomly selected customers in Hotel B stated that they were satisfied with the hotel services. Which of the following is the point estimate of the difference in customer dissatisfaction rates between hotels A and B? a) 0.03 B) 0.08 NS) 0.067 D) -0.067 TO) -0.03