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Big Shoulders Insurance Company took a random sample of 50 insurance claims paid out during the last year and found that the mean was $1500 and the standard deviation was $120.
a) Find and interpret a 95% confidence interval for the parameter of interest.
b) The industry standard for last year was an average claim of $1,575. Based on your interval computed above, does it appear that Big Shoulders claims are above average? Explain
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