Question

4. For a certain company, claim sizes on car policies are normally distributed about a mean of K1,800 and with standard deviation K300, whereas claim sizes on home policies are normally distributed about a mean of K1,200 and with standard deviation K500. Assuming independence among all claim sizes, calculate the probability that a car claim is at least twice the size of a home claim.

Answer 1

Ans: Probability that a car claim is at least twice the size of a home claim=0.2827.