An Insurance Company Evaluates Many Variables About a Person Before

question 23

Multiple Choice

An insurance company evaluates many variables about a person before deciding on an appropriate rate for automobile insurance. A representative from a local insurance agency selected a random sample of 15 insured drivers and recorded the amount of claims each made in the last 3 years. Based on this information, which of the following will you construct to learn about the average amount of claims made by the company's customer?

• A) confidence interval estimate for the mean using the standard normal distribution
• B) confidence interval estimate for the mean using the Student's t distribution
• C) confidence interval estimate for the proportion using the standard normal distribution
• D) confidence interval estimate for the difference between two means using the standard normal distribution

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