Essay
The manager of an insurance company wants to prove that the true average claim is actually higher than $1,800 originally set by the company. He randomly selected 40 claims and determined a sample mean of $1,950. Test the appropriate hypotheses at ? = 0.05 to determine if the insurance company should be concerned. Assume that the standard deviation of claims is $500.
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H0: 
1800; Ha > 1800; ztest = 1.897; ...View Answer
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Correct Answer:
Verified
1800; Ha > 1800; ztest = 1.897; ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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