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Olenka [21]
3 years ago
13

CNNBC recently reported that the mean annual cost of auto insurance is 954 dollars. Assume the standard deviation is 234 dollars

. You take a simple random sample of 61 auto insurance policies. Find the probability that a single randomly selected value is at least 960 dollars.
Mathematics
1 answer:
timofeeve [1]3 years ago
7 0

Answer: 0.42

Step-by-step explanation:

Given: Mean : \mu=954\text{ dollars}

Standard deviation : 234\text{ dollars}

Sample size : n=61

The formula to calculate z score is given by :-

z=\dfrac{X-\mu}{\dfrac{\sigma}{\sqrt{n}}}

For X=960

z=\dfrac{960 -954}{\dfrac{234}{\sqrt{61}}}=0.200262812203\approx0.2

The p-value =P(X\geq960)=1-P(X

Hence,  the probability that a single randomly selected value is at least 960 dollars = 0.42

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