Question

Any state Auto Insurance Company took a random sample of 364 insurance claims paid out during a 1-year period. The average claim paid was $1500. Assume σ = $240.

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

1500 +/- 1.64 ( 240 / √ 364 )

1500 +/- 20.63

( 1479.37,1520.63 )

Lower Limit = 1479.37 $

Upper Limit = 1520.63 $

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1500 +/- 2.58 ( 240 / √ 364 )

1500 +/- 32.46

( 1467.54,1532.46 )

Lower Limit = 1467.54 $

Upper Limit = 1532.46 $

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