The State Insurance Commissioner Believes That the Mean Automobile Insurance

question 47

True/False

The state insurance commissioner believes that the mean automobile insurance claim filed in her state exceeds $1,700.To test this claim,the agency has selected a random sample of 20 claims and found a sample mean equal to $1,733 and a sample standard deviation equal to $400.They plan to conduct the test using a 0.05 significance level.Based on this,the null hypothesis should be rejected if > $1,854.66 approximately.

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Definitions:

Breach

The violation or breaking of a law, duty, or agreement, especially concerning contracts.

Implied Warranty

An implied warranty is a legal doctrine that assumes a basic level of quality and functionality in sold goods even if not explicitly stated by the seller.

Preassembled

Refers to components or items that are assembled at the manufacturing point before being shipped to the customer or end-use location.

Product

Any good or service that can be offered to a market to satisfy a want or need, including physical items, services, and digital goods.