Answer: standard deviation = 577
Step-by-step explanation:
The insurance payment of the policy is deduced by x.
The formula for determining the theoretical standard deviation is expressed as
Standard deviation = √(b - a)²/12
Where
a represents the lowest value of x
b represents the highest value of x
From the given information,
a = 0
b = 2000
Therefore,
Standard deviation = √(200 - 0)²/12
= √(4000000/12)
= √333333.3333333333
= 577.35
Approximately 577
