The Distribution of Dollars Paid for Car Insurance by Car

question 106

True/False

The distribution of dollars paid for car insurance by car owners in a major east coast city is bell- shaped with a mean equal to $750 every six months and a standard deviation equal to $100. Based on this information we should use Tchebysheff's theorem to determine the conservative percentage of car owners that will pay between $550 and $950 for car insurance.

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Definitions:

Book Value

The net asset value of a company, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

Income Taxes

Taxes on an individual's or corporation's income imposed by the government.

Modified Accelerated Cost Recovery System (MACRS)

The system of accelerated depreciation allowed for federal tax computations.

5-Year Asset

An asset that is expected to provide economic value or service for a period of five years.