An Insurance Company Evaluates Many Variables About a Person Before

question 86

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 mean 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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Definitions:

Deviant Act

An action that deviates from the societal norms, which can be criminal or non-criminal but is considered outside the boundaries of acceptable behavior in a community.

Statistical Average

A measure representing the central or typical value in a set of data, calculated as the sum of all values divided by the number of values.

Deviance

Occurs when someone departs from a norm.

Nielson Media Research

A company that measures and analyzes television, radio, and internet audience sizes and demographics.