The Distribution of Dollars Paid for Home Insurance by Home

question 109

True/False

The distribution of dollars paid for home insurance by home owners in Detroit is bell - shaped with a mean equal to $800 every six months, and a standard deviation equal to $120. Based on this information, we can use Tchebysheff's Theorem to determine the percentage of home owners that will pay between $560 and $1,040 for home insurance.

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Definitions:

Caveat Emptor

A legal principle meaning "let the buyer beware," implying that the buyer assumes the risk regarding quality or condition of the item purchased.

Ladino

A language, also known as Judeo-Spanish, spoken by descendants of Sephardic Jews who were expelled from Spain in 1492.

Central America

A geographical region in the Americas comprised of seven countries located between Mexico and South America.

Eastern Europe

A geographical and cultural region of Europe, traditionally comprising the countries east of Germany and west of the Ural Mountains.