The distribution of claim size under a certain class of policy is modelled as a normal random variable, and previous years records indicate that the standard deviation is £120.Calculate the width of a 95% confidence interval for the mean claim size if sample of size 100 is available. Determine the minimum sample size required to ensure that a 95% confidence interval for the mean claim size is of width at most £10.Comment briefly on the comparison of the confidence intervals in (i) and (ii) with respect to widths and sample sizes used.

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Description: The distribution of claim size under a certain class of policy is modelled as a normal random variable, and previous years records indicate that the standard deviation is £120.Calculate the width of a 95% confidence interval for the mean claim size i

1) Since the population standard deviation is known, compute the width of the confidence interval of…

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MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

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The distribution of claim size under a certain class of policy is modelled as a normal random variable, and previous years records indicate that the standard deviation is £120.

Calculate the width of a 95% confidence interval for the mean claim size if sample of size 100 is available.
Determine the minimum sample size required to ensure that a 95% confidence interval for the mean claim size is of width at most £10.
Comment briefly on the comparison of the confidence intervals in (i) and (ii) with respect to widths and sample sizes used.

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