You are interested in finding out what the annual auto insurance premium is for a driver that fits your profile (same age group, location, etc...). You select a random sample of n = 20 people and find out that on average they pay ?̅ = $1800 a year on auto insurance. The standard deviation of your sample is s = $300. Develop a 99% confidence interval estimate of the population average annual auto insurance premium for drivers fitting your profile

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  1. You are interested in finding out what the annual auto insurance premium is for a driver that fits your profile (same age group, location, etc...). You select a random sample of n = 20 people and find out that on average they pay ?̅ = $1800 a year on auto insurance. The standard deviation of your sample is s = $300. Develop a 99% confidence interval estimate of the population average annual auto insurance premium for drivers fitting your profile

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Step 1

Given data:

Sample mean = $1800

Sample standard deviation = $300

Sample size = 20

Confidence level  = 99%

To find:

The 99% confidence interval estimate of the population average annual auto insurance premium for drivers fitting your profile

 

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