Test Hypotheses About a Population Proportion
-In 2002, the Mean $\$ 806$

question 37

Short Answer

Test Hypotheses about a Population Proportion
-In 2002, the mean expenditure for auto insurance in a certain state was $\$ 806$ . An insurance salesperson in this state believes that the mean expenditure for auto insurance is less today. She obtains a simple random sample of 32 auto insurance policies and determines the mean expenditure to be $\$ 781$ with a standard deviation of $\$ 39.13$ . Is there enough evidence to support the claim that the mean expenditure for auto insurance is less than the 2002 amount at the $\alpha = 0.05$ level of significance?

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Definitions:

Itemization

Refers to the process of breaking down a list or group into individual elements for detailed analysis or reporting.

Goods And Purchases

Transactions related to buying and selling physical products or merchandise in various economic sectors.

Accounting Formula

The formula that is considered the basis for all financial accounting, which is assets minus liabilities equals net worth.

Net Worth

The total value of an individual's or entity's assets minus liabilities, representing financial health.