Advanced Placement (AP), 23.05.2020 00:58 ananyaamazing

A consumer group wants to know if an automobile insurance company with thousands of customers has an average insurance payout for all their customers that is greater than $500 per insurance claim. They know that most customers have zero payouts and a few have substantial payouts. The consumer group collects a random sample of 18 customers and computes a mean payout per claim of $579.80 with a standard deviation of $751.30. Is it appropriate for the consumer group to perform a hypothesis test for the mean payout of all customers?

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