The accounting at GEICO notices that the average claim might be larger than $1800, which was previously set as a true average cl

Question

2 years ago

8

The accounting at GEICO notices that the average claim might be larger than $1800, which was previously set as a true average cl

aim amount.
If the actual average is higher, the company will be loosing money in the long run. They ran domly select 45 claims, and calculate a sample mean of S1,920.

Suppose that the variance of claims is known to be equal to S1600.

(a) Set the significance level to α 0.05 and use the hypothesis testing to check if the average claim is larger than $1800.

(b) Find the probability of Type I error.

(c) Find the p-value corresponding to the given sample.

Mathematics

1 answer:

puteri [66] · Answer 1 · 2022-07-10T13:05:22+03:00

puteri [66]2 years ago

3 0

Answer:

I’m not really sure

Step-by-step explanation:

Look at someone else’s answer