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Unformatted text preview: = $200 and the standard deviation of the loss is = $300. a) What are the mean and standard deviation of the total loss for 5 policies? (Losses on separate policies are independent.) b) What are the mean and standard deviation of the average loss for 5 policies? 3. An estimator, y_estimator1 , is used to estimate the population mean of Y ( Y ). Suppose Y = 100 and Y = 20. Suppose an SRS of n =10 is drawn, and y_estimator1 is a weighted average in which the observations are alternatively weighted by 1/2 and 3/2: y_estimator1 = (1/10)[(1/2) Y 1 + (3/2) Y 2 + (1/2) Y 3 + (3/2) Y 4 ++(1/2) Y 9 + (3/2) Y 10 ] What is the standard deviation of y_estimator1 (rounded to four decimal places )?...
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This note was uploaded on 02/22/2012 for the course PAM 2100 taught by Professor Abdus,s. during the Fall '08 term at Cornell University (Engineering School).
- Fall '08