In an analysis of a random sample of 75 claims to an insurance company, collision repair costs
Question:
In an analysis of a random sample of 75 claims to an insurance company, collision repair costs are found to have a mean of $1386. From previous studies, the standard deviation is known to be $735.
a) Construct a 95% confidence interval for the true mean repair cost.
b) Interpret the confidence interval in 9.21a.
c) Notice that to complete 9.21a it was implied that the sample mean follows a normal distribution. Is this a reasonable assumption based on how the problem is stated? Explain why or why not.
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a To construct a 95 confidence interval for the true mean repair cost we can use the formula Confide...View the full answer
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Related Book For 
Principles Of Managerial Statistics And Data Science
ISBN: 9781119486411
1st Edition
Authors: Roberto Rivera
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