Question

The average annual premium for automobile insurance in the United States is $1526. A representative sample of annual premiums for the state of Michigan is contained in the Excel Online file below. Assume the population is approximately normal. Construct a spreadsheet to answer the following questions.

Annual Premium | Formula Used | ||||

1936 | Sample Size | #N/A | |||

3108 | |||||

2379 | Point Estimate of Mean (to the whole) | #N/A | |||

2766 | |||||

2560 | Standard Deviation (4 decimals) | #N/A | |||

2902 | |||||

2621 | Confidence Coefficient | 0.95 | |||

2598 | |||||

2640 | Level of Significance | #N/A | |||

2633 | |||||

2330 | Margin of Error (2 decimals) | #N/A | |||

2890 | |||||

2967 | C.I. Lower Limit (2 decimals) | #N/A | |||

2505 | C.I. Upper Limit (2 decimals) | #N/A | |||

2667 | |||||

2110 | National Average for the U.S. | 1526 | |||

2575 | |||||

2165 | Does the 95% confidence interval for the annual automobile insurance premium in Michigan include the national average for the United States? | #N/A | |||

2329 | |||||

2409 | |||||

**a.** Provide a point estimate of the mean annual
automobile insurance premium in Michigan.

$ (to the nearest dollar)

**b.** Develop a 95% confidence interval for the
mean annual automobile insurance premium in Michigan.

($ , $ ) (to the nearest cent)

**c.** Does the 95% confidence interval for the
annual automobile insurance premium in Michigan include the
national average for the United States?

_____YesNo

What is your interpretation of the relationship between auto insurance premiums in Michigan and the national average?

We would be % confident that auto insurance premiums in Michigan are _______ the national average.

Answer #1

The mean annual premium for automobile insurance in the United
States is $1,491. Being from Pennsylvania, you believe automobile
insurance is cheaper there and wish to develop statistical support
for your opinion. A sample of 25 automobile insurance policies from
the state of Pennsylvania showed a mean annual premium of $1,432
with a standard deviation of s = $150. If required, enter negative
values as negative numbers.
a. Develop a hypothesis test that can be used to determine
whether the...

The mean annual
premium for automobile insurance in the United States is $1,494.
Being from Pennsylvania, you believe automobile insurance is
cheaper there and wish to develop statistical support for your
opinion. A sample of 25 automobile insurance policies from the
state of Pennsylvania showed a mean annual premium of $1,439 with a
standard deviation of s = $150.
If required, enter
negative values as negative numbers.
a.
Develop a hypothesis test that can be used to determine whether the...

The ABC insurance INC. reports that the mean annual premium for
automobile insurance in the United States was $1608 in summer 2018.
However, you believed automobile insurance was cheaper in North
Carolina and decided to develop statistical support for your
opinion. A sample of 25 automobile insurance policies from the
state of North Carolina showed a mean annual premium of $1560 with
a standard deviation of s = $165.
a. Develop a hypothesis test that can be used to determine...

The mean annual premium for automobile insurance in the United
States is $1,501. Being from Pennsylvania, you believe automobile
insurance is cheaper there and wish to develop statistical support
for your opinion. A sample of 25 automobile insurance policies from
the state of Pennsylvania showed a mean annual premium of $1,442
with a standard deviation of s= $155.
If required, enter negative values as negative numbers.
a. Develop a hypothesis test that can be used
to determine whether the mean...

2. “In attempting to determine the population mean annual
automobile insurance premium, you draw a sample of 25 automobile
insurance policies. This sample has a sample mean annual premium of
$1440 and a sample standard deviation of s=$165.
a. Construct a 99% confidence interval for the population mean
annual automobile insurance premium.
b. Assuming everything else is fixed, what happens to the margin
of error as the sample size increases.

In 2009, the average health insurance premium for employees in
the United States was $3,500 per year. In 2019, the average
employee premium had increased to $6,000 per year. If the CPI was
212 in 2009 and 255 in 2019, then the cost of the 2009 average
premium in terms of 2019 dollars was ______. Therefore, the real
cost of the average health insurance premium ______ from 2009 to
2019.

1. a) Suppose average monthly sales for retail locations across
the United States are approximately normally distributed with
unknown mean and variance. We’ve taken n= 100 observations and
found s^2= 5234.Construct a 95% confidence interval for the
population variance σ^2.
b) Using the setup from part a , construct a 95% lower
confidence bound for σ^2
c) You frequent a popular fast food restaurant that serves
tacos...and they frequently get your order wrong. You decide to do
a bit of...

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