The distribution of dollars paid for home insurance by home owners in Windsor is bell-shaped with a mean equal to $800 every six months, and a standard deviation equal to $120. Based on this information, we can use Tchebysheff's Theorem to determine the percentage of home owners who will pay between $560 and $1040 for home insurance.

Question

Quizplus · Accepted Answer

Tchebysheff's Theorem is applicable to any distribution, but it is not necessary for a bell-shaped (normal) distribution. Instead, the empirical rule (68-95-99.7 rule) is more appropriate for normal distributions to determine the percentage of data within a certain number of standard deviations from the mean.

The Distribution of Dollars Paid for Home Insurance by Home