Automobile insurance policies

 

An insurance agency is reviewing its sale of automobile insurance policies for the coming year. Using historical data the agency determines losses on each policy have a mean of $1000 and a standard deviation of $200. If the insurance agency sells 100 such policies at the premium of $1050 each, what is the probability the insurance agency loses money selling the policies? (Hint – Let 𝑋𝑖 denote the loss on the 𝑖th policy, 𝑖 = 1, … , 100. The average loss on the policies is 𝑋̅. What average loss causes the agency to lose money?)

 

Sample Solution

ke portrays the challenges faced by an Indian boy who was born in America, Gogol Ganguli, while discovering his identity and place and society. The book also portrays the difficulties that his parents, Ashima and Ashoke, faced leaving their loved ones behind in India when moving to America. Ashima compares living in America to being pregnant because they are both “a perpetual wait, a constant burden, a continuous feeling out of sorts… something that elicits the same curiosity from strangers, the same combination of pity and respect.” (Lahiri 49) Ashima feels alienated and alone without her family in America. She does not feel comfortable raising Gogol in a place she is not only unfamiliar with, but also a place where she has no relatives. When Ashima came to America, she left behind her family and tradition. Ashima had to compromise her happiness in order to conform to the American way. Ashima tries to incorporate her Indian traditions into her American life. “Ashima Ganguli stands in the kitchen of a Central Square apartment, combining Rice Krispies and Planters peanuts and chopped red onion in a bowl. She adds salt, lemon juice, thin slices of green chili pepper, wishing there were mustard oil to pour into the mix.” (1) American products will never fulfill Ashima’s desire for a taste from home. Another way in which Ashima strives to continue practicing Bengali tradition is by sending Gogol to Bengali language and culture lessons. Ashima sees the importance in familiarizing her children with Bengali culture because it is a large part of who she is. “For when Ashima and Ashoke close their eyes it never fails to unsettle them, that their children sound just like Americans, expertly conversing in a language that still at times confounds them, in accents they are accustomed not to trust.” (65) American culture will never be fully accepted by Ashima. She is uncomfortable living in American society because of the many unaccustomed ways. Gogol has the ability to disconnect himself from his Bengali life and indulge in American lifestyle. Ashima could never conform to American society the way Gogol did.

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