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Estimating Claim Size and Probability in the Auto
Estimating Claim Size and Probability in the Auto

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... 1. The mean lifetime of all home heaters of a certain brand is 9.5 years. A random sample of 30 home heaters is taken and the average lifetime of these heaters is 8.2 years. What is the population? a. All home heaters that have failed. b. All home heaters with a lifetime of 9.5 years. c. All home he ...
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introduction to the ideas of hypothesis testing

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This is not a practice test and may not cover all topics. You should

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... The sample mean was x = 100.6606 (close to 100), and the sample variance was 12624.47 (close to 12600). Thus our working seems to have been correct. 2. Randomly stopped sum This model arises very commonly in stochastic processes. A random number N of events occur, and each event i has associated wit ...
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Probability

Probability is the measure of the likeliness that an event will occur. Probability is quantified as a number between 0 and 1 (where 0 indicates impossibility and 1 indicates certainty). The higher the probability of an event, the more certain we are that the event will occur. A simple example is the toss of a fair (unbiased) coin. Since the two outcomes are equally probable, the probability of ""heads"" equals the probability of ""tails"", so the probability is 1/2 (or 50%) chance of either ""heads"" or ""tails"".These concepts have been given an axiomatic mathematical formalization in probability theory (see probability axioms), which is used widely in such areas of study as mathematics, statistics, finance, gambling, science (in particular physics), artificial intelligence/machine learning, computer science, game theory, and philosophy to, for example, draw inferences about the expected frequency of events. Probability theory is also used to describe the underlying mechanics and regularities of complex systems.
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