Mathematics, 17.03.2020 18:51 jaymoore9542
An insurance company is reviewing its current policy rates. When originally setting the rates, they believed that the average claim amount was $1,800. They are concerned that the true mean is actually higher than this because they could potentially lose a lot of money. They randomly select 40 claims and calculate a sample mean of $1,950. Assuming that the standard deviation of claims is $500, and set α= 0.05; α= 0.1, test to see if the insurance company should be concerned.
Answers: 2
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An insurance company is reviewing its current policy rates. When originally setting the rates, they...
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