An insurance company states that 90% of its claims are settled within 30 days. A consumer group believes that this percentage is too high and less than 90% of claims are settled that quickly. The group designs a study to test their theory. a. State in symbols both the null and alternate hypotheses for this study. H0: Ha: b. State the null hypothesis in words. c. The consumer group randomly selects 75 of the company’s claims and found that 55 of the claims were settled within 30 days. For this test for a population proportion, find the P-value for the statistic and state your decision based upon a 1% level of significance. P-value: ____________________________
An insurance company states that 90% of its claims are settled within 30 days. A consumer group believes that this percentage is too high and less than 90% of claims are settled that quickly. The group designs a study to test their theory.
a. State in symbols both the null and alternate hypotheses for this study.
H0:
Ha:
b. State the null hypothesis in words.
c. The consumer group randomly selects 75 of the company’s claims and found that 55 of the claims were settled within 30 days. For this test for a population proportion, find the P-value for the statistic and state your decision based upon a 1% level of significance.
P-value: ____________________________
d. Find a 98% confidence interval for the true percentage of claims that are settled within 30 days.
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