Mathematics, 04.12.2019 02:31 milkshakegrande101
The accounting at geico notices that the average claim might be larger than $1800, which was previously set as a true average claim amount.
if the actual average is higher, the company will be loosing money in the long run. they ran domly select 45 claims, and calculate a sample mean of s1,920.
suppose that the variance of claims is known to be equal to s1600.
(a) set the significance level to α 0.05 and use the hypothesis testing to check if the average claim is larger than $1800.
(b) find the probability of type i error.
(c) find the p-value corresponding to the given sample.
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The accounting at geico notices that the average claim might be larger than $1800, which was previou...
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