CNNBC recently reported that the mean annual cost of auto insurance is 962 dollars. Assume the standard deviation is 271 dollars, and the cost is normally distributed. You take a simple random sample of 8 auto insurance policies. Round your answers to 4 decimal places.What is the distribution of XX? XX ~ N(,)What is the distribution of ¯xx¯? ¯xx¯ ~ N(,)What is the probability that one randomly selected auto insurance is less than $859? a simple random sample of 8 auto insurance policies, find the probability that the average cost is less than $859. For part d), is the assumption of normal necessary? YesNo

We have given that Mean, μ = 962 Standard deviation, σ = 271 Sample size, n = 8 Note: According…

Answered: What is the distribution of XX? XX ~…

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter13: Probability And Calculus

Section13.3: Special Probability Density Functions

Problem 7E

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CNNBC recently reported that the mean annual cost of auto insurance is 962 dollars. Assume the standard deviation is 271 dollars, and the cost is normally distributed. You take a simple random sample of 8 auto insurance policies. Round your answers to 4 decimal places.

What is the distribution of XX? XX ~ N(,)
What is the distribution of ¯xx¯? ¯xx¯ ~ N(,)
What is the probability that one randomly selected auto insurance is less than $859?
a simple random sample of 8 auto insurance policies, find the probability that the average cost is less than $859.
For part d), is the assumption of normal necessary? YesNo

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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