If You Live in California,the Decision to Buy Earthquake Insurance

question 77

Short Answer

If you live in California,the decision to buy earthquake insurance is an important one.A survey revealed that only 133 of 337 randomly selected residences in one California county were protected by earthquake insurance.Calculate the appropriate test statistic to test the claim that less than 40 percent of the residents in the county are protected by earthquake insurance.

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Definitions:

Surplus

The amount by which the quantity of a product supplied exceeds the quantity demanded at a specific price, often leading to a decrease in price.

Shortage

A situation where the demand for a product or service exceeds its supply in a market.

Equilibrium Quantity

Equilibrium Quantity is the quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Demand and Supply of Wheat

Refers to the quantity of wheat that consumers are willing to purchase at various prices and the quantity that producers are willing to offer for sale, which together determine the market price of wheat.