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.

Question

Quizplus · Accepted Answer

Tchebysheff's theorem is applicable for any shape of distribution, not just bell-shaped distributions. For bell-shaped (normal) distributions, the Empirical Rule is more appropriate for estimating percentages within certain standard deviations from the mean.

The Distribution of Dollars Paid for Car Insurance by Car