Question

The amount of money spent on health claims by an insurance company, on a monthly basis, follows a uniform distribution over the interval [$84000, $103,500].

a. Compute the probability that less than $93,000 will be spent by the insurance company in health claims.

b. What is the mean monthly amount spent in health claims by the insurance company?

Answer 1

Let, X be the amount of money spent on health claims by an insurance company, on a monthly basis, follows Uniform distribution.

X ~ U( $84000, $103,500)

a) The probability that less than $93,000 will be spent by the insurance company in health claims.

  

  

b) the mean monthly amount spent in health claims by the insurance company

  

  

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