Question

1) The Mountain States Office of State Farm Insurance Company reports that approximately 85% of all automobile damage liability claims were made by people under 25 years of age. A random sample of eight automobile insurance claims is under study.

A) Find and interpret the expected number of claims that are made by people under 25 years of age.

B) Find the standard deviation for the number of claims that are made by people under 25 years of age. (round to two decimal spaces)

Answer 1