A researcher for a car insurance company wishes to estimate the mean annual premium that men aged 20-24 pay for their car insurance. A random sample of 16 men aged between 20 and 24 yields the following annual premiums, in dollars. Use the data to the right to obtain a point estimate of the mean annual premium for all men aged between 20 and 24. Round your answer to the nearest dollar. 489 525 865 600 406 721 658 851 462 959 580 725 856 610 720 985
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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