Question

In: Statistics and Probability

Anystate Auto Insurance Company took a random sample of 378 insurance claims paid out during a...

Anystate Auto Insurance Company took a random sample of 378 insurance claims paid out during a 1-year period. The average claim paid was $1545. Assume σ = $236.

Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.)

lower limit     $
upper limit     $


Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.)

lower limit     $
upper limit     $

Solutions

Expert Solution

Solution :

Given that,

Sample size = n = 378

Z/2 = 1.645

Margin of error = E = Z/2* ( /n)

= 1.645 * (236 / 378)

Margin of error = E = 19.97

At 90% confidence interval estimate of the population mean is,

- E < < + E

1545 - 19.97 < < 1545 + 19.97

1525.03 < < 1564.97

Lower limit: $1525.03

Upper limit: $1564.97

Sample size = n = 378

Z/2 = 2.576

Margin of error = E = Z/2* ( /n)

= 2.576 * (236 / 378)

Margin of error = E = 31.27

At 99% confidence interval estimate of the population mean is,

- E < < + E

1545 - 31.27 < < 1545 + 31.27

1513.73 < < 1576.27

Lower limit: $1513.73

Upper limit: $1576.27


Related Solutions

Anystate Auto Insurance Company took a random sample of 380 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 380 insurance claims paid out during a 1-year period. The average claim paid was $1525. Assume σ = $258. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $ Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $
Anystate Auto Insurance Company took a random sample of 358 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 358 insurance claims paid out during a 1-year period. The average claim paid was $1515. Assume σ = $248. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) Lower Limit = Upper Limit = Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) Lower Limit = Upper Limit =
Anystate Auto Insurance Company took a random sample of 350 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 350 insurance claims paid out during a 1-year period. The average claim paid was $1555. Assume σ = $256. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $ Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $
Anystate Auto Insurance Company took a random sample of 372 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 372 insurance claims paid out during a 1-year period. The average claim paid was $1555. Assume σ = $250. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $ Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $
Anystate Auto Insurance Company took a random sample of 370 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 370 insurance claims paid out during a 1-year period. The average claim paid was $1550. Assume σ = $256. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $ Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $
Anystate Auto Insurance Company took a random sample of 372 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 372 insurance claims paid out during a 1-year period. The average claim paid was $1565. Assume σ = $258. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $ Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $
Anystate Auto Insurance Company took a random sample of 382 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 382 insurance claims paid out during a 1-year period. The average claim paid was $1530. Assume σ = $256. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit $ upper limit $ Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit $ upper limit $
Anystate Auto Insurance Company took a random sample of 368 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 368 insurance claims paid out during a 1-year period. The average claim paid was $1595. Assume σ = $266. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $ Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit     $ upper limit     $
Anystate Auto Insurance Company took a random sample of 380 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 380 insurance claims paid out during a 1-year period. The average claim paid was $1595. Assume σ = $232. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit $ Incorrect: Your answer is incorrect. upper limit $ Incorrect: Your answer is incorrect. Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit...
Anystate Auto Insurance Company took a random sample of 358 insurance claims paid out during a...
Anystate Auto Insurance Company took a random sample of 358 insurance claims paid out during a 1-year period. The average claim paid was $1540. Assume σ = $234. Find a 0.90 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit upper limit Find a 0.99 confidence interval for the mean claim payment. (Round your answers to two decimal places.) lower limit upper limit
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT