In Order to Set Rates, an Insurance Company Is Trying

question 80

Essay

In order to set rates, an insurance company is trying to estimate the number of sick days that full time workers
at an auto repair shop take per year. A previous study indicated that the standard deviation was 2.8 days. a)
How large a sample must be selected if the company wants to be 95% confident that the true mean differs from
the sample mean by no more than 1 day? b)Repeat part (a)using a 98% confidence interval. Which level of
confidence requires a larger sample size? Explain.

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Definitions:

Amputation

The surgical removal of a body part, typically a limb or extremity, due to injury, disease, or medical condition.

Body Modification

The deliberate altering of the human body for aesthetic or non-medical reasons, such as tattoos, piercings, and plastic surgery.

Deviance

Behaviors or actions that violate the norms and expectations of a society or social group.

Beauty

An aesthetic quality or feature that gives pleasure to the senses or exalts the mind and spirit.