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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.

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.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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.
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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