An insurance company looks at the records for millions of ho

An insurance company looks at the records for millions of homeowners and sees that the mean loss from fire in a year is $250 per house and the standard deviation of loss is $1,000. If the company sells 10,000 policies, the approximate probability that the average loss in a year will be greater than $275 is 0.62%. But how can I find the total of losses for the year in the event of an average loss of $275?

Solution