Car insurance companies want to keep track of the average cost per claim The current...
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Algebra
Car insurance companies want to keep track of the average cost per claim The current data in use for Auto Insurance F Us is an average of 2 200 for each claim with a standard deviation of 500 With this average the company can stay competitive with rates but not lose money However the statistician for the company believes that the cost of the averag claim has increased He pulled 40 recent claims and found the average to be 2 350 Which most restrictive level of significance would suggest that the company should raise rates a Critical z values O 1 O 2 5 5 10 Upper Tail Values 5 1 65 2 5 1 96 1 2 58
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