Question

Problem 4 (15 pts) An individual needing automobile insurance requested quotes from 10 different insurers for identical coverage and received the following values amounts are annual premiums in dollars) { 720, 880,630, 590, 1140,908, 677,720, 1260, 800 } a) Determine the Mean c) The Sample Variation b) The Standard Deviation

Answer 1

The table given below ,

x	(X – X)
720	12656.25
880	2256.25
630	41006.25
590	58806.25
1140	94556.25
908	5700.25
677	24180.25
720	12656.25
1260	182756.3
800	1056.25
ΣΧ = 8325	Σx - X)2 = 435630.5

(a)

ΣΧ 8325 Mean = x = Σ. - = 832.5 n 10

(b) The sample variance is ,

2 Σ(X - X)? η – 1 435630.5 == 48403,39 10 -1

(c) The standard deviation is ,

s= V2 = 148403.39 = 220.01