An automobile insurance company claimed that, because of the Covid-19 pandemic, resulting in less automobile driving,...

An automobile insurance company claimed that, because of the Covid-19 pandemic, resulting in less automobile driving, they have reduced the monthly premiums that they charged per automobile by more than $60 per month on average. To test this claim, a random sample of 25 automobile policies were allowed to be looked at. This random sample compared the monthly premiums in June, 2020, with the monthly payment before the pandemic (February, 2020) and it was calculated that the monthly premium in June dropped by an average of $63 and that the standard deviation in this this drop in premiums was calculated to be $10.00. At the .01 level of significance, is there sufficient evidence that the insurance company’s claim is true? In answering this question, complete the following in the spaces provided (including diagrams):

Hypotheses

Test statistic

Decision rule

p-value

Conclusion

Expert Solution

orchestra answered 2 years ago

An automobile insurance company claimed that, because of the Covid-19 pandemic, resulting in less automobile driving,...

An automobile insurance company claimed that, because of the Covid-19 pandemic, resulting in less automobile driving, they have reduced the monthly premiums that they charged per automobile by at least $50 per month on average. To test this claim, a random sample of 22 automobile policies were allowed to be looked at. This random sample compared the monthly premiums in June, 2020, with the monthly payment before the pandemic (February, 2020) and it was calculated that the monthly premium in...

Summarize the COVID- 19 pandemic

How COVID-19 is driving a long-overdue revolution in education The pandemic has forced universities to bring...

How COVID-19 is driving a long-overdue revolution in education The pandemic has forced universities to bring their courses online. This is just one step along the road to a new educational paradigm, however. We can expect a new model to emerge once COVID-19 has passed. The pandemic that has shuttered economies around the world has also battered education systems in developing and developed countries. Some 1.5 billion students — close to 90% of all primary, secondary and tertiary learners in...

Because of the COVID-19 pandemic recession the unemployment rate spiked to more than 15% (the highest...

Because of the COVID-19 pandemic recession the unemployment rate spiked to more than 15% (the highest level since the Great Depression of the 1930s) and has slowly declined to a 7.9% in September. In response, the Federal Reserve has taken increased the money supply by more than 40% between February and September. This effort was made to prevent a financial crisis and lower interest rates. The inflation rate fell from 2.3% before the recession to 1.4% in September. Given the...

a. Because of the COVID-19 pandemic, the unemployment rate increased from 5.8% to 13.2% Is this macroeconomics or microeconomics?

a. Because of the COVID-19 pandemic, the unemployment rate increased from 5.8% to 13.2% Is this macroeconomics or microeconomics? b. Restaurant owners have additional costs because of government regulations about cleaning and social distancing. Is this macroeconomics or microeconomics?

Recently the COVID-19 pandemic has huge impact on Canadian economy. Explain how the COVID-19 pandemic affect...

Recently the COVID-19 pandemic has huge impact on Canadian economy. Explain how the COVID-19 pandemic affect the Canadian economy in terms of GDP, inflation rate and unemployment rate. Compare the economic impact of current COVID-19 pandemic with the economic impact of global financial crisis, which happened during 2008-2009.

Explain the causes and consequences of the Covid 19 Pandemic.

Covid-19 pandemic and the US economic policy

How is public health involved in a pandemic like the COVID 19 pandemic?

case: Now because of COVID-19, the lockdown makes this industry highly shattered, Less movement of vehicle,...

case: Now because of COVID-19, the lockdown makes this industry highly shattered, Less movement of vehicle, less or no manufacturing sectors apart from few commodity, all these creates again a big dilemma in this industry. Question: -Show how the equilibrium price will change in oil industries the in relation to the fluctuation of prices

Question

An automobile insurance company claimed that, because of the Covid-19 pandemic, resulting in less automobile driving,...

Solutions

Expert Solution

Related Solutions

An automobile insurance company claimed that, because of the Covid-19 pandemic, resulting in less automobile driving,...

Summarize the COVID- 19 pandemic

How COVID-19 is driving a long-overdue revolution in education The pandemic has forced universities to bring...

Because of the COVID-19 pandemic recession the unemployment rate spiked to more than 15% (the highest...

a. Because of the COVID-19 pandemic, the unemployment rate increased from 5.8% to 13.2% Is this macroeconomics or microeconomics?

Recently the COVID-19 pandemic has huge impact on Canadian economy. Explain how the COVID-19 pandemic affect...

Explain the causes and consequences of the Covid 19 Pandemic.

Covid-19 pandemic and the US economic policy

How is public health involved in a pandemic like the COVID 19 pandemic?

case: Now because of COVID-19, the lockdown makes this industry highly shattered, Less movement of vehicle,...