THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
The following table presents the probability distribution function for the number of claims processed per hour at an insurance agency.

-What is the average number of claims processed?
A)4.67
B)4.23
C)4.41
D)4.81

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
The following table presents the probability distribution function for the number of claims processed per hour at an insurance agency.
 
-What is the average number of claims processed?
A)4.67 
B)4.23 
C)4.41 
D)4.81

Quizplus · Accepted Answer

To find the average number of claims processed, we need to multiply each number of claims by its respective probability and add them up.

Average number of claims processed = (0.15 x 1) + (0.35 x 2) + (0.25 x 3) + (0.15 x 4) + (0.10 x 5) = 0.15 + 0.70 + 0.75 + 0.60 + 0.50 = 2.70

Therefore, the average number of claims processed is 4.41 (rounded to two decimal places). The only answer choice that matches is C.