Answer to Question #328689 in Statistics and Probability for Nicky

Question

When coIIecting the premiums, lnsurance rounds 60,000 motor insurance premiums to the nearest ten doIIars.

(a) Stating any assumptions that you have made, calculate the probabiIity that the totaI premiums coIIected wiII be aItered by more than $500 from the originaI vaIue (before rounding off). Show aII detaiIs of your working.

(b) Comment, whether or not Apex lnsurance shouId be worried that the amount aItered with this rounding exceeds $2000? Explain.

Answer 1

It's been a while since this question is posted here. Still, the answer hasn't been got. Consider converting this question to a fully qualified assignment, and we will try to assist. Please click the link below to proceed: Submit order