2) In order to set rates, an insurance company is trying to estimate the number of...

2) In order to set rates, an insurance company is trying to estimate the number of sick days that full time workers at a local bank take per year. Based on earlier studies it is known that the standard deviation is 12.3 days per year. How large a sample must be selected if the company wants to be 95% confident that their estimate is within 3 days of the true mean?

Expert Solution

Solution

standard deviation = =12.3

Margin of error = E = 3

At 95% confidence level the z is ,

= 1 - 95% = 1 - 0.95 = 0.05

/ 2 = 0.05 / 2 = 0.025

Z/2 = Z0.025 = 1.96

sample size = n = [Z/2* / E] 2

n = ( 1.96* 12.3 / 3 )2

n =64.57

Sample size = n =65

orchestra answered 2 years ago

In order to set rates, an insurance company is trying to estimate the mean number of...

In order to set rates, an insurance company is trying to estimate the mean number of sick days that full time workers at an auto repair shop take per year. A previous study indicated that the standard deviation was 2.1 days. A. How large a sample must be selected if the company wants to be 90% confident that the true mean differs from the sample mean by no more than 1 day? No need to show work for the critical...

How to solve using functions in TI84: In order to set rates, an insurance company is...

How to solve using functions in TI84: In order to set rates, an insurance company is trying to estimate the number of sick days that full time workers at an auto repair shop take per year. A previous study indicated that the standard deviation was 2.8 days. How large a sample must be selected if the company wants to be 95% confident that the true mean differs from the sample mean by no more than 1 day? A)141 B)31 C)1024...

Suppose you are trying to estimate the population mean for the number of Denver people that...

Suppose you are trying to estimate the population mean for the number of Denver people that will vote in the next election. You know there are 800,000 voters in Denver. You have sampled 41,000 Denver citizens and have calculated a sample mean of 150,000 likely voters in the next election. You believe the population standard deviation to be 80,000 voters. Please calculate a confidence interval for your sample mean, assuming you wish to be 95% confident.

Suppose you are trying to determine the number of boxes you need to order to be...

Suppose you are trying to determine the number of boxes you need to order to be able to ship the orders from your small business this week. You consistently over- or underestimate how many you need, so you decide to figure it out with statistics! You take a sample of data you’ve recorded from past orders. Consider a sample with the following properties: x̅ = 893.6, s = 63.2, n = 48 A) Why might you prefer an interval estimate...

2. Jenni is an insurance agent for the company listed in question 1. The number of...

2. Jenni is an insurance agent for the company listed in question 1. The number of whole-life policies she has written (sold) that lapse is Poisson distributed with a mean of 12 policies per year. a. What is the probability only 9 of Jenni’s whole-life policies will lapse in a given year? (1 point) b. What is the probability 16 of Jenni’s whole-life policies will lapse in a given year? (1 point) Question 1 (for reference) An insurance company is...

In order to estimate the number of calls to expect at a new suicide hotline, volunteers...

In order to estimate the number of calls to expect at a new suicide hotline, volunteers contact a random sample of 50 similar hotlines across the nation and find that the sample mean is 32.0 calls per month. Construct a 99% confidence interval for the mean number of calls per month. Assume that the population standard deviation is known to be 9.5 call per month. (Please show all work)

An insurance company provides theft insurance for a set ofdiamond jewellery. In the event of...

An insurance company provides theft insurance for a set of diamond jewellery. In the event of theft, the policy pays $ 10 million. Theft for this kind of jewellery happens only very rarely, with a chance of 0.01%. How much (in terms of insurance premium) would the insurance company charge its client, in order to break even on average?

A manager is trying to estimate the manufacturing costs of a new product. The company makes...

A manager is trying to estimate the manufacturing costs of a new product. The company makes several other products that utilize some of the same manufacturing procedures as the new product. Which cost estimation method would be the best method to determine the total cost of manufacturing the new product? A. Engineering estimates. B. Regression analysis. C. Account analysis. D. Scattergraph.

Question 2 You are offered a special set of annuities by your insurance company, whereby you...

Question 2 You are offered a special set of annuities by your insurance company, whereby you will receive $23,600 a year for the next 7 years, nothing for the next 10 years, and then $40,000 a year for the following 12 years. How much would you be willing to pay for these annuities today, if the annuities are paid at the beginning of each year? Assume the annuities have a beta of 1.47, the expected return on the market is...

Gamete Genotype Number Set 1 + + + 129 Set 2 a b c 135 Set...

Gamete Genotype Number Set 1 + + + 129 Set 2 a b c 135 Set 3 + + c 65 Set 4 a b + 69 Set 5 + b c 264 Set 6 a + + 272 Set 7 a + c 31 Set 8 + b + 35 Total 1000 The order shown is not necessarily correct. Which gene locus is in the middle? Show the order.

Question