Hurricane Andrew swept through southern Florida causing billions of dollars of damage. Because of the severity of the storm and the type of residential construction used in this semitropical area, there was some concern that the average claim size would be greater than the historical average hurricane claim of $25,000. Several insurance companies collaborated in a data gathering experiment. They randomly selected 26 homes and sent adjusters to settle the claims. In the sample of 26 homes, the average claim was $27,500 with a population standard deviation of $5500. Is there sufficient evidence at a 0.10 significance level to support the claim that the home damage is greater than the historical average? Assume the population of insurance claims is approximately normally distributed. Step 3 of 3: Draw a conclusion and interpret the decision.
Hurricane Andrew swept through southern Florida causing billions of dollars of damage. Because of the severity of the storm and the type of residential construction used in this semitropical area, there was some concern that the average claim size would be greater than the historical average hurricane claim of $25,000. Several insurance companies collaborated in a data gathering experiment. They randomly selected 26 homes and sent adjusters to settle the claims. In the sample of 26 homes, the average claim was $27,500 with a population standard deviation of $5500. Is there sufficient evidence at a 0.10 significance level to support the claim that the home damage is greater than the historical average? Assume the population of insurance claims is approximately normally distributed. Step 3 of 3: Draw a conclusion and interpret the decision.
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter6: Ratio, Proportion, And Probability
Section6.6: Scale Drawings
Problem 1E
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![Hurricane Andrew swept through southern Florida causing billions of dollars of damage. Because of the severity of the storm and the type of residential construction used
in this semitropical area, there was some concern that the average claim size would be greater than the historical average hurricane claim of $25,000. Several insurance
companies collaborated in a data gathering experiment. They randomly selected 26 homes and sent adjusters to settle the claims. In the sample of 26 homes, the
average claim was $27,500 with a population standard deviation of $5500. Is there sufficient evidence at a 0.10 significance level to support the claim that the home
damage is greater than the historical average? Assume the population of insurance claims is approximately normally distributed.
Step 3 of 3: Draw a conclusion and interpret the decision.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb746646f-39dd-4312-845d-6abd1eeee77e%2F405aeb62-712b-49d6-adfd-71aa61226c65%2Fxsycxo_processed.png&w=3840&q=75)
Transcribed Image Text:Hurricane Andrew swept through southern Florida causing billions of dollars of damage. Because of the severity of the storm and the type of residential construction used
in this semitropical area, there was some concern that the average claim size would be greater than the historical average hurricane claim of $25,000. Several insurance
companies collaborated in a data gathering experiment. They randomly selected 26 homes and sent adjusters to settle the claims. In the sample of 26 homes, the
average claim was $27,500 with a population standard deviation of $5500. Is there sufficient evidence at a 0.10 significance level to support the claim that the home
damage is greater than the historical average? Assume the population of insurance claims is approximately normally distributed.
Step 3 of 3: Draw a conclusion and interpret the decision.
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