1) 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. a) What would the null and alternative hypotheses be for this test? Ho: HA: b) Explain what a Type 1 error would be for this test. c) Using the p-value method detailed on the primer handout, what would the decision rule for this test be? d) Suppose they randomly select 40 claims, and calculate a sample mean of $1,950. Assuming that the population standard deviation of claims is $500, and set a = .05, and test to see if the insurance company should be concerned. What would the p-value be? (Show your work.) e) Given an interpretation of what the p-value means in the context of the problem. f) If a = 0.05, state a conclusion.

1) 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. a) What would the null and alternative hypotheses be for this test? Ho: HA: b) Explain what a Type 1 error would be for this test. c) Using the p-value method detailed on the primer handout, what would the decision rule for this test be? d) Suppose they randomly select 40 claims, and calculate a sample mean of $1,950. Assuming that the population standard deviation of claims is $500, and set a = .05, and test to see if the insurance company should be concerned. What would the p-value be? (Show your work.) e) Given an interpretation of what the p-value means in the context of the problem. f) If a = 0.05, state a conclusion.

Name: 1) An insurance company is reviewing its current policy rates. When o
Uploaded: 2024-03-20T07:07:12.000Z
Channel: Bartleby
Description: 1) An insurance company is reviewing its current policy rates. When originally setting therates they believed that the average claim amount was $1,800. They are concerned that thetrue mean is actually higher than this, because they could potentially

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

(c) Calculate the test statistic. d) Decide whether to reject or fail to reject the null hypothesis. Then interpret the decision in the context of the original claim.
2. Which one of the following statements is correct? A. If you are told a sample percentage is 25%, you would need to know the sample size in order to convert that percentage to a proportion. B. We always begin a hypothesis test by assuming that the alternative hypothesis is true. C. The test statistic is affected by the size of the sample. D. A small P-value means we have evidence in favor of the null hypothesis. E. The test statistic will be negative if the claimed population proportion is smaller than the sample proportion.
. A producer of high quality teas wants to be sure they are filling tea bags with an average weight of 5.5 grams. Any underfilling or overfilling is undesirable. The correct set of hypotheses is
The average income of a large sample of households is $63,000 and the s.d. is $7,000. Assume that the data is approximately bell-shaped. What percent of these households have incomes between $42,000 and $77,000? Don’t forget to properly justify your answer using the empirical rule.
b. The odds ratios that result for investigating poor physical health are: Non-overweight: Reference Overweight: 1.08 (0.99-1.17) Obese: 1.21 (1.09-1.33) Severely Obese: 1.87 (1.64-2.12) Provide a conclusion. Be sure to include a discussion of statistical inference.
Use five-step hypothesis testing for each of the following problems. Number each of the five steps. You may use the traditional method or the p-value method. 1) Science fiction novels average 250 pages in length. The average length of 8 randomly chosen novels written by I. M. Wordy was 265 pages in length with a standard deviation of 35. At are Wordy's novels significantly longer than the average science fiction novel? Use five-step hypothesis testing. 2) The average monthly cell phone bill was reported to be $50.07 by the U.S. Wireless Industry. Random Sampling of a large cell phone company found the following monthly cell phone charges (in dollars): At the 0.01 level of significance, can it be concluded that the average phone bill has…
Consumer Reports stated that the meantime for a Chrysler Concorde to go from 0 to 60 miles per hour in 8.7 seconds. If you want to set up a statistical challenge to claim the average time from 0 to 60 miles per hour is not equal to 8.7 seconds, what would be the alternate hypothesis and type of test? H1: μ≠ 8.7, a right-tailed test b)H1: μ≠ 8.7, two-tailed test c) H1: μ≠ 8.7,left-tailed test
A) What is the alternative hypothesis? a. The population mean is equal to 7.2 points. b. The population mean is greater than 7.2 points. c. The population mean is smaller than 7.2 points. B) What Z-score(s) corresponds to the alpha level? In other words, at what point(s) would we reject the null hypothesis? C) What is the test statistic?
It is a hypothesis which is tested for the purpose of rejection under the assumption that it is true. A. Alternative hypothesis B. Composite hypothesis C. Null hypothesis D. Statistical hypothesis
Symbolically state the alternative hypotheses for the following claim: The mean salary for registered nurses in San Diego, California is greater than is $104,000.