Question
An insurance company wants to estimate the average
claim amount for motor insurance policies. They take multiple random samples of 50 claims each from a large population. They notice that the distribution of sample means forms a bell-shaped curve , even though the population distribution is right-skewed . Â Which statistical concept explains this phenomenon? ÂSolution
Explanation: The Central Limit Theorem (CLT) states that, regardless of the shape of the population distribution , the distribution of sample means will tend to be normal (bell-shaped) if the sample size is sufficiently large (typically n ≥ 30 ). Here, despite the right-skewed nature of the claim amounts , the repeated sampling process ensures that the sample means approximate a normal distribution , allowing for reliable statistical inferences.
- Three years ago, the ratio of ages of 'S' and 'T' was 7:8. Seven years from today, their ages will be in the ratio 9:10. What is the present age of 'R', wh...
The ages of A, B and C together are 54 years. B is twice as old as A and C is 6 years older than A. What is the difference between ages of B and C?
The present ages of Vikas and Sneha are in the ratio 7:4, respectively. After 6 years from now, the sum of their ages will be 78 years. Find the present...
The ratio of A and B present age is 7:4. The product of their ages is 2800. What will be the ratio of their ages after 5 years?
- The father is 5 years older than the mother and five times as old as the son. If their current age sum is 110 years, after how many years will the father b...
Tap P can fill the tank in 5 hours and Tap Q can empty it in `7(1/2)` hours. Tap P starts filling and they opened for 1 hour each alternatively. ...
Eight years ago, Pawan's age was 25% greater than Bheem's age at that time. If their combined current ages total 70 years, determine Pawan's current age.
Ratio of present ages of A and B is 6:5, respectively. C who is 6 years older than A will become 60 years older after 12 years. Find the present age of B.
Sum of the present ages of A, B, C and D is 40 years. After 3 years ratio of their ages is 5:3:2:3. What is C’s present age?
The total age of A, B and C seven years hence will be 90 years. Find the age of C six years hence, if the present age of A and B is 39 years and 25 year...
