If You Live in California, the Decision to Buy Earthquake

question 138

Short Answer

If you live in California, the decision to buy earthquake insurance is an important one. A survey revealed that only 133 of 337 randomly selected residences in one California county were protected by earthquake insurance. Calculate the appropriate test statistic to test the claim that less than 40 percent of the residents in the county are protected by earthquake insurance.

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Definitions:

Interposition

A visual cue in which an object partially covers another, suggesting depth perception.

Precognition

The purported psychic ability to see or know about events before they happen.

Precognition

The ability or claimed ability to see or know about events before they happen, often regarded as a psychic phenomenon.

Clairvoyance

The alleged skill of obtaining insights about a thing, individual, place, or physical occurrence without using the five common senses, instead relying on extrasensory perception.