Probability and Statistical Analysis: Insurance Premium and Cancer Treatment

Question 1: Insurance Premium

Question 1An insurance company rounds 50000 insurance premiums to the nearest dollar. Assuming that the fractional parts of the premiums are continuous and uniformly distributed between 0 and 1, compute the probability that the total amount owing will be altered by more than $60. You may use R to assist you in answering this question, but you would need to list out all working details.

Question 2A new drug cures 9 of 200 patients suffering from a type of cancer, for which the historical cure rate is 2%. Perform a test to check on the significance of this result, at both 5% and 1% levels of significance. Based on your conclusion, comments on the efficacy of the treatment using this new dr