# Question: The frequency distribution shown in the accompanying table depicts the

The frequency distribution shown in the accompanying table depicts the property and marine losses incurred by a large oil company over a two-year period. In the insurance business, each “loss” interval is called a layer. Research Review (Summer 1998) demonstrated that analysts often treat the actual loss value within a layer as a uniform random variable.

a. Use the uniform distribution to find the mean loss amount in layer 2.

b. Use the uniform distribution to find the mean loss amount in layer 6.

c. If a loss occurs in layer 2, what is the probability that it exceeds $30,000?

d. If a loss occurs in layer 6, what is the probability that it is between $750,000 and $800,000?

a. Use the uniform distribution to find the mean loss amount in layer 2.

b. Use the uniform distribution to find the mean loss amount in layer 6.

c. If a loss occurs in layer 2, what is the probability that it exceeds $30,000?

d. If a loss occurs in layer 6, what is the probability that it is between $750,000 and $800,000?

**View Solution:**## Answer to relevant Questions

Refer to the Teaching Psychology (May 1998) study of how external clues influence performance, presented in Exercise. Recall that two different forms of a midterm psychology examination were given, one printed on blue paper ...Geologists have successfully used statistical models to evaluate the nature of sedimentary deposits (called facies) in reservoirs. One of the models’ key parameters is the proportion P of facies bodies in a reservoir. An ...Refer to Exercise 6.5 and find E(x) = μ. Then use the sampling distribution of x-bar found in Exercise 6.5 to find the expected value of x-bar. Note that E(x-bar) = μ. In exercise A random sample of n = 64 observations is drawn from a population with a mean equal to 20 and standard deviation equal to 16. a. Give the mean and standard deviation of the (repeated) sampling distribution of x-bar. b. ...The Test of Knowledge about Epilepsy (KAE), which is designed to measure attitudes toward persons with epilepsy, uses 20 multiple-choice items, all of which are incorrect. For each person, two scores (ranging from 0 to 20) ...Post your question