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Texas A&M University Commerce Insurance Policies Probability Question

Writing,

Writing,

Texas A&M University Commerce Insurance Policies Probability Question

Question Description

I’m working on a mathematics Other and need support to help me learn.

An insurance agency is reviewing its sale of automobile insurancepolicies for the coming year. Using historical data the agency determines losses oneach policy have a mean of $1000 and a standard deviation of $200. If the insuranceagency sells 100 such policies at the premium of $1050 each, what is the probabilitythe insurance agency loses money selling the policies? (Hint – Let denote the losson the th policy, = 1, … , 100. The average loss on the policies is ̅. What averageloss causes the agency to lose money?)

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