Estimate the mean and standard deviation

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Reference no: EM133037587

An insurance company would like to estimate the average amount claimed by its policy holders over the past year. A random sample of 300 policy holders was chosen, whose observed sample mean was $739.98, and whose sample standard deviation was $312.70.

Question: Historically, 95% of the claims were for at least $720.00 and 90% of the claims were for at most $770.00. Using this information, estimate the mean and standard deviation of the amount of all the claims. Assume normal distribution for all claim amounts.

Reference no: EM133037587

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