Statistics- The amount of claims per policy at a health insurance company
QUESTION
The amount of claims per policy at a health insurance company has a normal distribution with mean $300 and a standard deviation $100. Daren has a health insurance policy with this company which has an annual deductible of $200. The means that if Darren’s claims in one year are less than $200, then he pays for them and the company pays nothing, but if they are over $200, then he pays $200 and the company pays the rest. What is the probability that the company will not pay anything next year against Darren’s policy?
ANSWER:
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