Question

State Farm Insurance studies show that in Colorado, 55% of the auto insurance claims submitted for property damage were submitted by males under 25 years of age. Suppose 10 property damage claims involving automobiles are selected art random. (a) Let r be the number of claims that are made by males under age 25. Make a histogram for the r-distribution probabilities.

Solution

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Given:

n=10n=10

p=55%=0.55p=55\%=0.55

Determine the probabilities using table 2 in the appendix in the row with n=10n=10 and in the column with p=0.55p=0.55:

P(0)=0.000P(0)=0.000

P(1)=0.004P(1)=0.004

P(2)=0.023P(2)=0.023

P(3)=0.075P(3)=0.075

P(4)=0.160P(4)=0.160

P(5)=0.234P(5)=0.234

P(6)=0.238P(6)=0.238

P(7)=0.166P(7)=0.166

P(8)=0.076P(8)=0.076

P(9)=0.021P(9)=0.021

P(10)=0.003P(10)=0.003

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