An insurance company knows that in the entire population of millions of apartment own-ers, the mean annual loss from damage is $75 and the standard deviation of the loss is$300. The distributionof losses is strongly right-skewed: most policies have $0 loss, but a few have large losses.

(a) If the company sells 10,000 policies, can it safely base its rates on the assumption that its average losswill be no greater than$85?

(b) In a sample of 10,000 policies 25% of average loss is less than how much?