Invoice totals for insurance are determined by actuaries who study the likelihood of the company paying a claim on a particular policy. So why do different insurance companies charge different amounts for the same coverage? The policy total is determined by the population of former and current policy holders for each company. A different pool of policy holders produces different results. However, the commonalities are often similar. The law of large numbers gives an insurance company a fairly reliable indication of what each insurance policy will cost the company, on average. Some policy holders will go for years without making a claim. Other policy holders will cut into the bottom line profit with costly claims which are not always recouped as policy holders sometimes change insurance providers. After natural disasters, a large volume of claims are filed which also must be planned for when setting policy rates. Although natural disasters and large claims are not typically common, the law of large numbers does provide an average for policy costs across many different classifications and over time.

Overproduction of uric acid in the body can be an indication of cell breakdown. this may be an advance indication of illness such as gout, leukemia, or lymphoma.† over a period of months, an adult male patient has taken nine blood tests for uric acid. the mean concentration was x = 5.35 mg/dl. the distribution of uric acid in healthy adult males can be assumed to be normal, with σ = 1.87 mg/dl. (a) find a 95% confidence interval for the population mean concentration of uric acid in this patient's blood. what is the margin of error? (round your answers to two decimal places.) lower limit upper limit margin of error (b) what conditions are necessary for your calculations? (select all that apply.) σ is unknown n is large σ is known normal distribution of uric acid uniform distribution of uric acid (c) interpret your results in the context of this problem. there is not enough information to make an interpretation. the probability that this interval contains the true average uric acid level for this patient is 0.05. the probability that this interval contains the true average uric acid level for this patient is 0.95. there is a 95% chance that the confidence interval is one of the intervals containing the population average uric acid level for this patient. there is a 5% chance that the confidence interval is one of the intervals containing the population average uric acid level for this patient. (d) find the sample size necessary for a 95% confidence level with maximal margin of error e = 1.10 for the mean concentration of uric acid in this patient's blood. (round your answer up to the nearest whole number.) blood tests