Question

Anystate Auto Insurance Company took a random sample of 370 insurance claims paid out during a 1-year period. The average claim paid was $1575. Assume σ = $246.

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	$

Answer 1

given data are:-

sample mean () = 1575

population sd () = 246

sample size(n) = 370

a).z critical value for 90% confidence level, both tailed test be:-

the 0.90 (90%) confidence interval for the mean claim payment is:-

lower limit = $ 1553.96

upper limit = $ 1596.04

b).z critical value for 99% confidence level, both tailed test be:-

the 0.99 (99%) confidence interval for the mean claim payment is:-

lower limit = $ 1542.06

upper limit = $ 1607.94

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