Thursday, March 26, 2020

Suppose that the amount of time it takes to process insurance claims is normally distributed

Suppose that the amount of time it takes to process insurance claims is normally distributed with a mean of 12 weeks and a variance of 9 weeks.  What is the probability that the next claim will be processed within.

Key elements:
 normally distributed
mean of 12
 variance of 9

Step 1. Convert Variance to Standard Deviation

=SQRT(Variance Cell)

Step 2. Use Norm.Dist().


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