SOLUTION: An insurance company's profity on a homeowner's policy has a normal distribution with mean $50 and standard deviation $45 a) Fin the probability the insurance company will exper

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Question 975617: An insurance company's profity on a homeowner's policy has a normal distribution with mean $50 and standard deviation $45
a) Fin the probability the insurance company will experience a loss (negative profit on any single policy?

b) Find the probability the insurance company will average more than $30 profit per policy on a sample of 25 policies?

Answer by Fombitz(32388)   (Show Source): You can put this solution on YOUR website!
Find the z score when profit equals zero.

Find the probability associated with that z score.

.
.
.

With the corresponding probability,

This is the probability that the average is less than 30 so find the complement of the area.


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