1. If the mean of Y is $3,200, then the variance of Y must be larger than $3,200.
2. If E(X) = +2,300, then P(X . 2,300) = 1 / 2.
3. The units of both the mean and standard deviation of Y are dollars.
4. If an insurance policy limits the coverage of an accident to $500,000, then both E(X) and E(Y) must be less than $500,000.
5. If costs associated with accidents rise next year by 5%, then the mean of the random variable X should also increase by 5%.
6. If costs associated with accidents rise next year by 5%, then the standard deviation of the random variable Y should also increase by 5%.
An insurance company uses a random variable X to model the cost of an accident incurred by a female driver who is 20 to 30 years old. A second random variable Y models the cost of an accident by a male driver in the same range of ages. Both random variables are measured in dollars.