Question

mean = 6000

standard deviation = 2000

wha percentage of losses between 2000 and 4000?

Answer 1

Solution :

To obtain the percentage, we shall consider that, the losses for which the mean and standard deviation is given is normally distributed.

i.e.

Mean (μ) = 6000

Standard deviation (σ) = 2000

We have to obtain P(2000 < X < 4000).

We know that, if X ~ N(μ, σ​​​​​​2) then,

Using "pnorm function of R we get,

P(Z < -1) = 0.1587 and P(Z ≤ -2) = 0.0227

0.1360 = 13.60%

Hence, 13.60% of losses are between 2000 and 4000.

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