Actuaries at an insurance company must determine a premium for
Actuaries at an insurance company must determine a premium for a new type of insurance. A random sample of 40 potential purchasers of this type of insurance was found to have suffered the following values of losses (in dollars) during the past year. These losses would have been covered by the insurance if it were available.
a. Find the mean, median, and mode of these 40 losses.
b. Which of the mean, median, or mode is largest?
c. Draw a box-and-whisker plot for these data, and describe the skewness, if any.
d. Which measure of central tendency should the actuaries use to determine the premium for this insurance?
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