Question
In: Finance
A car insurance company would like to determine the proportion of accident claims covered by the...
A car insurance company would like to determine the proportion of accident claims covered by the company. According to a preliminary estimate 40% 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 90% confident that the sample percentage is within 2% of the actual percentage of the accidents covered by the insurance company?
Solutions
Expert Solution
z value for 90% = 1.64
p = 40% = 0.4
d = margin of error = 2% = 0.02
Hence, sample size, n = (z)2 p ( 1 – p ) /
d2 = 1.642 x 0.4 x (1 - 0.4) /
0.022 = 1,614
jeff jeffy answered 2 years agoRelated Solutions
A car insurance company would like to determine the proportion of accident claims covered by the...
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?
5. A car insurance company would like to determine the proportion of accident claims covered by...
5. A car insurance company would like to determine the
proportion of accident claims covered by the company. According to
a preliminary estimate 65% 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 95% confident that
the sample percentage is within 2% of the actual percentage of the
accidents covered by the insurance company?
An insurance company would like to compare the cost of claims at their company in two...
An insurance company would like to compare the cost of claims at
their company in two different states. They take a random sample of
50 of their claims from each state. A second insurance company
claims that the samples are dependent and that any conclusions
drawn are invalid. Do you agree? Explain. Select the correct answer
below: No, the claims made in one state should not have any effect
on the claims in another state. The company is only comparing...
A researcher would like to determine if the proportion of households without health insurance coverage differs...
A researcher would like to determine if the proportion of
households without health insurance coverage differs with household
income. Suppose the following data were collected from 700 randomly
selected households.
Complete parts a through c.
Health Insurance
Household Income
Yes
No
Less than $25,000
52
23
$25,000 to $49,999
143
41
$50,000 to $74,999
200
37
$75,000 or more
180
24
a. Using α=0.01, perform a chi-square test to determine if the
proportion of households without health insurance differs by...
A researcher would like to determine if the proportion of households without health insurance coverage differs...
A researcher would like to determine if the proportion of
households without health insurance coverage differs with household
income. Suppose the following data were collected from 700 randomly
selected households. Complete parts a through c.
Household_Income Yes No
Less_than_25,000 53 20
25,000_to_49,999 143 41
50,000_to_74,999 205 37
75,000_or_more 174 27
a. Using alpha= 0.01, perform a chi-square test to determine
if the proportion of households without health insurance differs by
income bracket.
What is the test statistic?
What is the...
A researcher would like to determine if the proportion of households without health insurance coverage differs...
A researcher would like to determine if the
proportion of households without health insurance coverage differs
with household income. Suppose the following data were collected
from
700
randomly selected households. Complete parts a through c.
Heath Insurance
Household Income
Yes
No
Less than $25,000
50
20
$25,000 to $49,999
141
44
$50,000 to $74,999
201
35
$75,000 or more
179
30
a. Using
alphaαequals=0.01,
perform a chi-square test to determine if the proportion of
households without health insurance differs...
A researcher would like to determine if the proportion of households without health insurance coverage differs...
A researcher would like to determine if the
proportion of households without health insurance coverage differs
with household income. Suppose the following data were collected
from
700700
randomly selected households. Complete parts a through c.
Heath Insurance
Household Income
Yes
No
Less than $25,000
55
22
$25,000 to $49,999
145
40
$50,000 to $74,999
201
40
$75,000 or more
177
20
a. Using alphaαequals=0.01, perform a chi-square test to
determine if the proportion of households without health insurance
differs...
An insurance company would like to test the hypothesis that a difference exists in the proportion...
An insurance company would like to test the hypothesis that a
difference exists in the proportion of students in 12th grade who
text while driving when compared to the proportion of 11th
grade drivers who text. A random sample of 160 12th grade
students found that 84 texted while driving. A random sample of
17511th grade students found that 70 texted while driving. Assume
Population 1 is defined as 12th grade drivers and Population 2 is
defined as 11th grade...
An insurance company would like to test the hypothesis that a difference exists in the proportion...
An insurance company would like to test the hypothesis that a
difference exists in the proportion of students in 12th grade who
text while driving when compared to the proportion of
11th-grade drivers who text. A random sample of 160 12th grade
students found that 84 texted while driving. A random sample of 175
11th grade students found that 84 texted while driving. A random
sample of 175 12th grade drivers and Population 2 is defined as
11th-grade drivers. What...
A car accident expert is assigned to a case where the insurance company suspects the car...
A car accident expert is assigned to a case where the insurance
company suspects the car company to use lower quality steel (lower
TS) than the standards in their bumpers. The expert is given a
post-crash bumper to run his test on. Since the bumper is
completely deformed, he cannot place it into the normal bumper
tensile tester. He is thinking about running a hardness test on the
deformed bumper to estimate the TS of the steel to test the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Cara Ryder managers a ski school in a large resort and is trying to develop a...
- 1. Like most senses, the neurons that carry that carry the somatic sensations [touch, vibration, two-point...
- Explain how the Court has at times allowed the restriction of the civil rights of minority...
- 1. How do psychoanalytic and behavioral interpretations of childhood experience differ? 2. How does selective attention...
- Procter & Gamble Embraces Continuous Planning and Execution The Procter & Gamble Company (P&G) is an...
- Explain what a project is amd how priject management can contribute to an organization. Briefly outline...
- Instructions: Each of the following scenarios illustrates one of Freud’s defense mechanisms from the list below....
ADVERTISEMENT