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