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Let X Be the Amount in Claims (In Dollars) That

Question 42

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Let X be the amount in claims (in dollars) that a randomly chosen policyholder collects from an insurance company this year. The probability distribution function of X is given below. Let X be the amount in claims (in dollars)  that a randomly chosen policyholder collects from an insurance company this year. The probability distribution function of X is given below.   -Let $S be the standard deviation of X. Which of the following is a correct interpretation of this value? A)  We would expect a randomly chosen policyholder to collect $S in claims this year. B)  The most likely value for the amount in claims is $S. C)  If we were to observe a large number of policyholders, the average amount claimed would be around $S. D)  On average, the amount claimed is about $S away from the mean.
-Let $S be the standard deviation of X. Which of the following is a correct interpretation of this value?


A) We would expect a randomly chosen policyholder to collect $S in claims this year.
B) The most likely value for the amount in claims is $S.
C) If we were to observe a large number of policyholders, the average amount claimed would be around $S.
D) On average, the amount claimed is about $S away from the mean.

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