Your insurance company has converged for three types of cars.The annual cost for each type of cars can be modeled using Gaussian(Normal) distribution, with the following parameters: (Discussionsallowed!)
- Car type 1 Mean=$520 and Standard Deviation=$110
- Car type 2 Mean=$720 and Standard Deviation=$170
- Car type 3 Mean=$470 and Standard Deviation=$80
Use Random number generator and simulate 1000 long columns, foreach of the three cases. Example: for the Car type 1, use Number ofvariables=1, Number of random numbers=1000, Distribution=Normal,Mean=520 and Standard deviation=110, and leave random Seedempty.
Next: use either sorting to construct the appropriate histogramor rule of thumb to answer the questions:
13. What is approximate probability that Car Type 1 hasannual cost less than $550?
- a. Between 10% and 13%
- b. Between 23% and 29%
- c. Between 55% and 70%
- d. None of these
14. Which of the three types of cars is most likely tocost more than $1000?
- a. Type 1
- b. Type 2
- c. Type 3
15. For which of the three types we have the highestaverage cost?
- a. Type 1
- b. Type 2
- c. Type 3
