Statewide Auto Insurance believes that for every trip longer than 10 minutes that a teenager drives, there is a 1 in 1,000 chance that the drive will result in an auto accident. Assume that the cost of an accident can be modeled with a beta distribution with an alpha parameter of 2, a beta parameter of 3, a minimum value of $300, and a maximum value of $18,000. Construct a simulation model to answer the following questions. (Hint: Review Appendix 11.1 for descriptions of various types of probability distributions to identify the appropriate way to model the number of accidents in 500 trips.) (a) If a teenager drives 500 trips longer than 10 minutes, what is the average cost (in $) resulting from accidents? (Use at least 1,000 trials. Round your answer to two decimal places.) $ 3539 Estimate the variance of the cost resulting from accidents. (Round your answer to the nearest integer.) Provide a 95% confidence interval (in $) on this mean. (Round your answers to two decimal places.) 1 to $ (b) If a teenager drives 500 trips longer than 10 minutes, what is the probability that the total cost from accidents will exceed $8,000? (Use least 1,000 trials. Round your answer to three decimal places.) Provide a 95% confidence interval on this proportion. (Round your answers to three decimal places.)
Statewide Auto Insurance believes that for every trip longer than 10 minutes that a teenager drives, there is a 1 in 1,000 chance that the drive will result in an auto accident. Assume that the cost of an accident can be modeled with a beta distribution with an alpha parameter of 2, a beta parameter of 3, a minimum value of $300, and a maximum value of $18,000. Construct a simulation model to answer the following questions. (Hint: Review Appendix 11.1 for descriptions of various types of probability distributions to identify the appropriate way to model the number of accidents in 500 trips.) (a) If a teenager drives 500 trips longer than 10 minutes, what is the average cost (in $) resulting from accidents? (Use at least 1,000 trials. Round your answer to two decimal places.) $ 3539 Estimate the variance of the cost resulting from accidents. (Round your answer to the nearest integer.) Provide a 95% confidence interval (in $) on this mean. (Round your answers to two decimal places.) 1 to $ (b) If a teenager drives 500 trips longer than 10 minutes, what is the probability that the total cost from accidents will exceed $8,000? (Use least 1,000 trials. Round your answer to three decimal places.) Provide a 95% confidence interval on this proportion. (Round your answers to three decimal places.)
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter1: Equations And Graphs
Section: Chapter Questions
Problem 10T: Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s...
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Transcribed Image Text:Statewide Auto Insurance believes that for every trip longer than 10 minutes that a teenager drives, there is a 1 in 1,000 chance that the drive will result in an auto accident. Assume that the cost of an accident can be modeled with a beta distribution with an alpha parameter of 2,
a beta parameter of 3, a minimum value of $300, and a maximum value of $18,000. Construct a simulation model to answer the following questions. (Hint: Review Appendix 11.1 for descriptions of various types of probability distributions to identify the appropriate way to model
the number of accidents in 500 trips.)
(a) If a teenager drives 500 trips longer than 10 minutes, what is the average cost (in $) resulting from accidents? (Use at least 1,000 trials. Round your answer to two decimal places.)
$ 3539
Estimate the variance of the cost resulting from accidents. (Round your answer to the nearest integer.)
Provide a 95% confidence interval (in $) on this mean. (Round your answers to two decimal places.)
$
2 to $
(b) If a teenager drives 500 trips longer than 10 minutes, what is the probability that the total cost from accidents will exceed $8,000? (Use at least 1,000 trials. Round your answer to three decimal places.)
Provide a 95% confidence interval on this proportion. (Round your answers to three decimal places.)
x to
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