An automobile insurer has found that repair claims are Normally distributed with a mean of $590 and a standard deviation of $540.

(a) Find the probability that a single claim, chosen at random, will be less than $540.
ANSWER:

(b) Now suppose that the next 60 claims can be regarded as a random sample from the long-run claims process. Find the probability that the average $\bar x$ of the 60 claims is smaller than $540.
ANSWER:

(c) If a sample larger than 60 claims is considered, there would be chance of getting a sample with an average smaller then $540. (NOTE: Enter ''LESS'', ''MORE'' or ''AN EQUAL'' without the quotes.)