A Car Insurance Company Would Like to Determine the Proportion

question 61

Multiple Choice

A car insurance company would like to determine the proportion of accident claims covered by the company.According to a preliminary estimate,60 percent of the claims are covered.How large a sample should be taken to estimate the proportion of accident claims covered by the company if we want to be 98 percent confident that the sample percentage is within ±3 percent of the actual percentage of the accidents covered by the insurance company?

• A) 348
• B) 1508
• C) 1887
• D) 1442

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Definitions:

Benefits a Firm

The advantages or positive outcomes that accrue to a company, such as increased revenue, market share, brand loyalty, or competitive advantage.

Price Discrimination

The practice of selling the same product to different resellers (wholesalers, distributors, or retailers) or to the ultimate consumer at different prices; some, but not all, forms of price discrimination are illegal.

Dunkin' Donuts

An American multinational coffee and doughnut company, also known for its breakfast sandwiches.

Management By Walking Around

A management style where leaders walk around the workplace to interact with employees, understand their tasks, and encourage open communication.