Test Hypotheses About a Population Proportion
-In 2002, the Mean $\$ 806$

Short Answer

Test Hypotheses about a Population Proportion
-In 2002, the mean expenditure for auto insurance in a certain state was $\$ 806$ . An insurance salesperson in this state believes that the mean expenditure for auto insurance is less today. She obtains a simple random sample of 32 auto insurance policies and determines the mean expenditure to be $\$ 781$ with a standard deviation of $\$ 39.13$ . Is there enough evidence to support the claim that the mean expenditure for auto insurance is less than the 2002 amount at the $\alpha = 0.05$ level of significance?