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A Michigan automobile insurance company would like to estimate the average size of an accident claim...

A Michigan automobile insurance company would like to estimate the average size of an accident claim for the fiscal year 2002. A random sample of 20 accident claims yielded an average of $1600 with a standard deviation of $800.

2. The national average claim for the industry is $1500. Does the sample indicate that the Michi- gan average is different from the national average? (Conduct a two-tailed test of significance. What is the P-value of your test?)

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