Calculate a sample mean, An insurance company is reviewing

Calculate a sample mean

Assignment Help Basic Statistics

Reference no: EM13244693

An insurance company is reviewing its current policy rates. When originally setting the rates they believed that the average claim amount was $1,800. Now there are concerns that if the true mean is actually higher than this 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 significance level = :05, test to see if the insurance company should be concerned.

Show all of your work and clearly label each of your calculations. Share your calculations from Excel and your interpretations of your findings in your Word document.

Reference no: EM13244693

Questions Cloud

Explain what is the ph of buffer that consist nah2po4 : What is the pH of buffer that consist of 0.20 M NaH2PO4 and 0.40 M Na2HPO4? Ka=6.2x10^-8

Find the voltage across the 32.5-µf capacitor : A 11-V battery is connected to three capacitors in series. The capacitors have the following capacitances: 3.6 µF, 11.1 µF, and 32.5 µF. Find the voltage across the 32.5-µF capacitor

What is the price/earnings p e ratio : 1) ABC Company has total assets of $795,800. There are 40,505 shares outstanding with a market value of $24 per share. If the net profit margin is 7.8% and the total asset turnover is 2.2, what is the price/earnings (P/E) ratio?

What is the most appropriate statistical test in situation : What is the most appropriate statistical test in situation and are there significant differences in the number of deliveries?

Calculate a sample mean : An insurance company is reviewing its current policy rates. When originally setting the rates they believed that the average claim amount was $1,800.

What was the max kinetic energy of the protons : an early cyclotron had a diameter of 30 cm and used a magnet capable of applying a magnetic field of 2.0 T. What was the max kinetic energy of the protons

Compare the three designs on speed of completion : Compare the three designs on speed of completion, the builder randomly selects 10 homes that he built in the past based on each of the three designs.

Calculate the tension t in the rope : A gymnast of mass 52.0kg hangs from a vertical rope attached to the ceiling, calculate the tension T in the rope if the gymnast hangs on the rope

Sales in hundreds of dollars : Sales in hundreds of dollars over a five-day period and determine whether differences between the two groups are statistically significant.

User Account

All Pages