Suppose That the Amount of Time It Takes to Process

question 12

Essay

Suppose that the amount of time it takes to process insurance claims is normally distributed with a mean of 12 weeks and a variance of 9 weeks.Find the number of weeks which the insurance company is
a.99% sure the next claim will be completed by.
b.95% sure the next claim will be completed by.
c.90% sure the next claim will be completed by.
d.80% sure the next claim will be completed by.

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Definitions:

Depreciated

The decrease in the value of an asset over time due to wear and tear or obsolescence.

Modified Accelerated Cost Recovery System

A method of depreciation in the U.S. tax code that allows for faster asset depreciation in the early years of the asset's life.

U.S. Federal Income Tax

The financial charge imposed annually by the Internal Revenue Service on the income of individuals, corporations, trusts, and various legal entities.

Depreciating Assets

Assets that lose value over time due to use, wear and tear, or obsolescence, such as machinery, vehicles, and buildings.