You are employed at an insurance company and are asked to calculate the probabilities of various financial losses due to hurricanes. Typically hurricanes tend to cause $10 billion worth of losses (i.e. claims) with a standard deviation of 4 billion and these losses are normally distributed. A) what percent of hurricanes will cause losses between 4 and 12 billion dollars? B) to the nearest percent, find the probability that a hurricane causes less than $1 billion worth of losses? C) to the nearest percent, find the probability of a catastrophic loss of 20 billion or more? If there are expected to be 100 more hurricanes in the next decade, how many hurricanes will cause a 20 billion dollar loss or more
You are employed at an insurance company and are asked to calculate the probabilities of various financial losses due to hurricanes. Typically hurricanes tend to cause $10 billion worth of losses (i.e. claims) with a standard deviation of 4 billion and these losses are normally distributed. A) what percent of hurricanes will cause losses between 4 and 12 billion dollars? B) to the nearest percent, find the probability that a hurricane causes less than $1 billion worth of losses? C) to the nearest percent, find the probability of a catastrophic loss of 20 billion or more? If there are expected to be 100 more hurricanes in the next decade, how many hurricanes will cause a 20 billion dollar loss or more
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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You are employed at an insurance company and are asked to calculate the probabilities of various financial losses due to hurricanes. Typically hurricanes tend to cause $10 billion worth of losses (i.e. claims) with a standard deviation of 4 billion and these losses are normally distributed .
A) what percent of hurricanes will cause losses between 4 and 12 billion dollars?
B) to the nearest percent, find the probability that a hurricane causes less than $1 billion worth of losses?
C) to the nearest percent, find the probability of a catastrophic loss of 20 billion or more? If there are expected to be 100 more hurricanes in the next decade, how many hurricanes will cause a 20 billion dollar loss or more?
D) what amount of losses would put a hurricane in the top 1% of losses?
Transcribed Image Text:You are employed at an insurance company and are asked to calculate the probabilities of various financial losses due to hurricanes. Typically hurricanes tend to cause 10 billion dollars worth of losses (Le. claima) with a standard deviation of 4 billion and these losses are normaly distributed.
(A) What percent of hurricanes will cause losses between 4 and 12 billion dollars?
(C) To the nearest percent, find the probability of a catastrophic loss of 20 bilion or more? If there are expected to be 100 huricanes in the next decade, how many hurricanes will cause a 20 bilion loss or more?
(D) What amount of losses would put a hurricane in the top 1% of losses?
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