Question

An insurance policy for water damage pays an amount of damage up to $500. The amount...

An insurance policy for water damage pays an amount of damage up to $500. The amount of damage is uniformly distributed between $250 and $1,280. a. What is the probability that the amount of damage is more than $450? Round your answer to 3 decimals. Number b. What is the probability that the amount of damage is between $715 and $920? Round your answer to 3 decimals.

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An insurance policy pays the loss amount up to a maximum of 500. The loss distribution...
An insurance policy pays the loss amount up to a maximum of 500. The loss distribution for the first policy is exponentially distributed with mean 1000. The loss distribution for the second policy is uniformly distributed between 0 and 1250. What is the total insurer's expected payment for the two policies? The result should be 793
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (X) and the amount of fire damage, in thousands of dollars (Y). The MegaStat output is reported below.   ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...
The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance...
The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance follows. Payment ($) Probability 0 0.82 500 0.05 1000 0.04 3000 0.04 5000 0.03 8000 0.01 10000 0.01 a. Use the expected collision payment to determine the collision insurance premium that would enable the company to break even. Answer: $ b. The insurance company charges an annual rate of $595 for the collision coverage. What is the expected value of the collision policy for...
Problem 5 An insurance company issues a policy on a car under the following conditions: (i)...
Problem 5 An insurance company issues a policy on a car under the following conditions: (i) The replacement cost of $37,000 will be paid for a total loss. (ii) If it is not a total loss, but the damage is more than $11,000, then only $ 10,500 will be paid. (iii) Nothing will be paid for damage costing $11,000 or less and, (iv) Nothing will be paid out if there is no damage. The company estimates, based on their internal...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT