Mathematics, 03.04.2021 05:50 Tooey6225
In any year, the weather can inflict storm damage to a home. From year to year, the damage is random. Let Y denote the dollar value of damage in any given year. Suppose that in 95% of the years Y = $0, but in 5% of the years Y = $20,000.
A. The mean of the damage in any year is $__. nothing. The standard deviation of the damage in any year is $.
B. Consider an "insurance pool" of 100 people whose homes are sufficiently dispersed so that, in any year, the damage to different homes can be viewed as independently distributed random variables. Let barY denote the average damage to these 100 homes in a year. The expected value of the average damage barY, is $. The probability that exceeds $is.
Answers: 2
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