You are interested in the average dollar amount lost by victims of burglary. The National Insurance Association has reported the mean dollar amount lost by victims of burglary is $2,000 with a standard deviation of 600. Assume this is the population mean and population standard deviation. You believe that the true loss is more than this, so you take a sample of 100 burglary victims and ask them to report the value of the property that was stolen from them. Your sample reported an average dollar loss of 2,222 dollars. Test the hypothesis that the true value of property lost in burglaries is more than $2,000. Use alpha = .002
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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