Confidence interval for the same problem

Assignment Help Basic Statistics

Reference no: EM13990524

For a random sample of 256 owners of medium-sized cars, it was found that their average monthly car insurance premium for comprehensive cover was R356. Assume that the population standard deviation is R44 per month and that insurance premiums are normally distributed.

(a) Find the 95% confidence interval for the average monthly comprehensive car insurance premium paid by all owners of medium-sized cars. Interpret the result. (Use the z-table.)

(b) Find the 90% confidence interval for the same problem. Interpret the result and compare it to (a).

(d) Use Excel's CONFIDENCE formula to compute (a).

(e) If 3 000 car owners are comprehensively insured by the Sun Insurance company, estimate, with 95% confidence, the total monthly premium income of the company.

Reference no: EM13990524

Questions Cloud

Find the future value using the given information : Compute the present value of $1000 due in 4 years at 15%, compounded semiannually. Compute the future value of a 9%, 5-year ordinary annuity that pays $600 each year.

Is yokohamas greater residual income an indication that he : For each division , comnpute the return on investment in terms of margin and turnover. Assume tht the company evaluates performance using residual income and that the rate of return for any division is 15%, Compute the residual income for each divisi..

Estimate of the true population average amount : (a) Set up a 99% confidence interval estimate of the true population average amount of paint included in a five-litre can. (Use the z-table.) (b) Based on the results of (a), do you think that the store owner has a right to complain to the manufact..

Determine the molecular formula of the paraffin : What is the ratio of CO2 to H2O in the product gas? Use this result to suggest a method for determining the molecular formula of the paraffin.

Confidence interval for the same problem : (a) Find the 95% confidence interval for the average monthly comprehensive car insurance premium paid by all owners of medium-sized cars. Interpret the result. (Use the z-table.) (b) Find the 90% confidence interval for the same problem. Interpret ..

Determine the excess air supplied to the process : The analysis of the dry exhaust gas from a boiler shows 10 % Carbon Dioxide. Assuming the rest is Oxygen and Nitrogen; determine the excess air supplied to the process and the % excess air. The fuel contains 85%C and 15 % H2.

What is the square root of a kilogram is it a gram : What is the square root of a kilogram? Is it a gram?

Consider the growth of a human population split : Consider the growth of a human population split into the three ae groups discussed

User Account

All Pages