An Insurance Company Estimates 45 Percent of Its Claims Have

question 70

Multiple Choice

An insurance company estimates 45 percent of its claims have errors. The insurance company wants to estimate with 99 percent confidence the proportion of claims with errors. What sample size is needed if they wish to be within 5 percent of the actual?

• A) 664
• B) 657
• C) 163
• D) 1084

---

Definitions:

Extended Oil Drain Intervals

Practices or technologies that allow for longer periods between oil changes in engines or machinery, enhancing efficiency and reducing maintenance.

OEMs

Stands for Original Equipment Manufacturers, which are companies that produce parts and equipment that may be marketed by another manufacturer.

Differential Carriers

The housing that contains the differential gear mechanism, supporting and enabling the differential to divide torque between wheels.

Differential Carrier Housing

A component that encases the differential gear system, protecting it and supporting its function in a vehicle.