Question

# Question 1 (1 point) Suppose the national average dollar amount for an automobile insurance claim is...

Question 1 (1 point)

Suppose the national average dollar amount for an automobile insurance claim is \$746.9. You work for an agency in Michigan and you are interested in whether or not the state average is different from the national average. Treating the national mean as the historical value, What are the appropriate hypotheses for this test?

Question 1 options:

 1) HO: μ ≤ 746.9 HA: μ > 746.9
 2) HO: μ > 746.9 HA: μ ≤ 746.9
 3) HO: μ ≥ 746.9 HA: μ < 746.9
 4) HO: μ = 746.9 HA: μ ≠ 746.9
 5) HO: μ ≠ 746.9 HA: μ = 746.9

Question 2 (1 point)

It is reported in USA Today that the average flight cost nationwide is \$487.499. You have never paid close to that amount and you want to perform a hypothesis test that the true average is actually different from \$487.499. The hypotheses for this situation are as follows: Null Hypothesis: μ = 487.499, Alternative Hypothesis: μ ≠ 487.499. A random sample of 39 flights shows an average cost of \$506.29 with a standard deviation of \$87.9709. What is the test statistic and p-value for this test?

Question 2 options:

 1) Test Statistic: 1.334, P-Value: 0.9049
 2) Test Statistic: 1.334, P-Value: 0.1902
 3) Test Statistic: 1.334, P-Value: 1.9049
 4) Test Statistic: 1.334, P-Value: 0.0951
 5) Test Statistic: -1.334, P-Value: 0.1902

Question 3 (1 point)

A medical researcher wants to determine if the average hospital stay after a certain procedure is different from 14.37 days. The hypotheses for this scenario are as follows: Null Hypothesis: μ = 14.37, Alternative Hypothesis: μ ≠ 14.37. If the researcher randomly samples 26 patients that underwent the procedure and determines their average hospital stay was 13.16 days with a standard deviation of 5.19 days, what is the test statistic and p-value of this test?

Question 3 options:

 1) Test Statistic: -1.189, P-Value: 1.8772
 2) Test Statistic: -1.189, P-Value: 0.8772
 3) Test Statistic: -1.189, P-Value: 0.12285
 4) Test Statistic: -1.189, P-Value: 0.2457
 5) Test Statistic: 1.189, P-Value: 0.2457

Question 4 (1 point)

In the year 2000, the average car had a fuel economy of 20.25 MPG. You are curious as to whether this average is different from today. The hypotheses for this scenario are as follows: Null Hypothesis: μ = 20.25, Alternative Hypothesis: μ ≠ 20.25. You perform a one sample mean hypothesis test on a random sample of data and observe a p-value of 1e-04. What is the appropriate conclusion? Conclude at the 5% level of significance.

Question 4 options:

 1) The true average fuel economy today is significantly less than 20.25 MPG.
 2) The true average fuel economy today is equal to 20.25 MPG.
 3) We did not find enough evidence to say a significant difference exists between the true average fuel economy today and 20.25 MPG.
 4) The true average fuel economy today is significantly greater than 20.25 MPG.
 5) The true average fuel economy today is significantly different from 20.25 MPG.

Question 5 (1 point)

Suppose the national average dollar amount for an automobile insurance claim is \$959.61. You work for an agency in Michigan and you are interested in whether or not the state average is less than the national average. The hypotheses for this scenario are as follows: Null Hypothesis: μ ≥ 959.61, Alternative Hypothesis: μ < 959.61. You take a random sample of claims and calculate a p-value of 0.0257 based on the data, what is the appropriate conclusion? Conclude at the 5% level of significance.

Question 5 options:

 1) The true average claim amount is significantly different from \$959.61.
 2) The true average claim amount is higher than or equal to \$959.61.
 3) We did not find enough evidence to say the true average claim amount is less than \$959.61.
 4) The true average claim amount is significantly less than \$959.61.
 5) The true average claim amount is significantly higher than \$959.61.

Question 1 (1 point)

Suppose the national average dollar amount for an automobile insurance claim is \$746.9. You work for an agency in Michigan and you are interested in whether or not the state average is different from the national average. Treating the national mean as the historical value, What are the appropriate hypotheses for this test?

Null hypothesis Ho : u = 746.9

Alternate hypothesis Ha : u not equal to 746.9

2)

As the population s.d is not mentioned here and we are given with sample s.d as the best estimate

We will use t distribution to estimate the p-value

Test statistics t = (sample mean - claimed mean)/(s.d/√n)

t = (506.29 - 487.99)/(87.9709/√39) = 1.334

Degrees of freedom is = n-1 = 38

For 38 dof and 1.334 test statistics, P-value from t distribution is = 0.1902

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