Question: A probability distribution for the claim sizes for an auto insurance policy is given in the table below Claim Size 20 30 40 50 60

A probability distribution for the claim sizes for an auto insurance policy is given in the table below

Claim Size 20 30 40

50 60 70 80

Probability 0.20 0.10 0.10

0.20 0.15 0.10 0.15

a) Evaluate the cdf for this distribution at the following points: 0, 20, 30, 40, 50, 90.

1

b)

c)

What is the mean of this distribution?

What is the variance of this distribution?

d) the mean claim size? (In other words, what percentage of the claims are greater than or equal to [the mean size minus one standard deviation] but less than or equal to [the mean size plus one standard deviation]?)

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