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?

---

Definitions:

Variable Cost

Costs that change in proportion to the level of production or business activity.

Unit Basis

A method of measurement or allocation in which operations or costs are expressed per single unit of production or activity.

Traditional Format

Refers to a conventional method or structure commonly used in a specific field or context.

External Reporting

The process of presenting financial and other information to external stakeholders, such as investors, regulators, and the public.