In Order to Set Rates, an Insurance Company Is Trying

Essay

In order to set rates, an insurance company is trying to estimate the number of sick days that full time workers at a local bank take per year. Based on earlier studies, they will assumed that s= 2.2 days
a) How large a sample must be selected if the company wants to be 98% confident that their estimate is within 1 day of the true mean?
b) Repeat part (a) using a 99% confidence interval. Which level of confidence requires a larger sample size? Explain.