Question

# The average annual premium for automobile insurance in the United States is \$1526. A representative sample...

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.

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 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

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