As an actuarial analyst, you are working with a large insurance company to help it understand claims distribution for private passenger automobile policies. You have available claims data for a recent year, consisting of

• STATE CODE: codes 01 through 17 used, with each code randomly assigned to an actual individual state

• CLASS: rating class of operator, based on age, sex, marital status, and use of vehicle

• GENDER: operator sex AGE: operator age

• PAID: amount paid to settle and close a claim.

You are focusing on older drivers, 50 and older, for which there are n = 6,773 claims available.

Examine the histogram of the amount PAID and comment on the symmetry.

Create a new variable, the (natural) logarithmic claims paid, LNPAID.

Create a histogram and a qq plot of LNPAID. Comment on the symmetry of this variable.