Question
In: Statistics and Probability
A fire insurance company thought that the mean distance from a home to the nearest fire...
A fire insurance company thought that the mean distance from a home to the nearest fire department in a suburb of Chicago was at least 4.7 miles. It set its fire insurance rates accordingly. Members of the community set out to show that the mean distance was less than 4.7 miles. This, they thought, would convince the insurance company to lower its rates. They randomly identified 64 homes and measured the distance to the nearest fire department from each. The resulting sample mean was 4.4. If σ = 2.4 miles, does the sample show sufficient evidence to support the community's claim at the α = 0.05 level of significance?
A.) Conduct a hypothesis test using the classical approach.
B.) Conduct a hypothesis test using the p-value approach.
Solutions
orchestra answered 2 years agoRelated Solutions
A fire insurance company thought that the mean distance from a home to the nearest fire...
A fire insurance company thought that the mean distance from a
home to the nearest fire department in a suburb of Chicago was at
least 5.9 miles. It set its fire insurance rates accordingly.
Members of the community set out to show that the mean distance was
less than 5.9 miles. This, they thought, would convince the
insurance company to lower its rates. They randomly indentified 62
homes and measured the distance to the nearest fire department from
each. The...
A fire insurance company thought that the mean distance from a home to the nearest fire...
A fire insurance company thought that the mean distance from a
home to the nearest fire department in a suburb of Chicago was at
least 5.9 miles. It set its fire insurance rates accordingly.
Members of the community set out to show that the mean distance was
less than 5.9 miles. This, they thought, would convince the
insurance company to lower its rates. They randomly indentified 60
homes and measured the distance to the nearest fire department from
each. The...
A fire insurance company thought that the mean distance from a home to the nearest fire...
A fire insurance company thought that the mean distance from a
home to the nearest fire department in a suburb of Chicago was at
least 4.7 miles. It set its fire insurance rates accordingly.
Members of the community set out to show that the mean distance was
less than 4.7 miles. This, they thought, would convince the
insurance company to lower its rates. They randomly identified 64
homes and measured the distance to the nearest fire department from
each. The...
Fire Damage: A fire insurance company is interested in investigating the effect of the distance between...
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(thousands of dollars) in major residential fire. A random sample
of 15 recent fires in a suburb is selected. The data set can be
found in the excel file Fire with variables name Distance and
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(12th edition). M. A.: Pearson....
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A property and casualty insurance company (which provides fire
coverage for dwellings) felt that the mean distance from a home to
the nearest fire department in rural Alabama was at least 10 miles.
It set its fire insurance rates accordingly. Members of the
community set out to show that the mean distance was less than 10
miles due to the increased number of volunteer fire departments.
This, they felt, would convince the insurance company to lower its
rates. They randomly...
A potential customer for a $50,000 fire insurance policy possesses a home in an area that,...
A potential customer for a $50,000 fire insurance policy
possesses a home in an area that, according to experience, may
sustain a total loss in a given year with probability of 0.001 and
a 50% loss with probability 0.01. Ignoring all other partial
losses, what premium should the insurance company charge for a
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this area?
A customer for a $50,000 fire insurance policy has a home in an area that may...
A customer for a $50,000 fire insurance policy has a home in an
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probability of 0.001 and a 50% loss with a probability of 0.01.
There is a 0.989 chance that the customer will make no claim in the
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An insurance company is considering offering fire insurance to customers in a certain state.
An insurance company is considering offering fire insurance to customers in a certain state. After examining thousands of records of insurance claims in the area, they have come up with the following information:
Payout
Number of Claims
$58,971
22
28,117
602
0
2,972
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Now, let X be the expected payout....
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