SOLUTION: The records of a casualty insurance company show that, in the past, its clients have had a mean of auto accidents per day with a variance of 1.8 . The actuaries of the company cla
Algebra.Com
Question 175705: The records of a casualty insurance company show that, in the past, its clients have had a mean of auto accidents per day with a variance of 1.8 . The actuaries of the company claim that the variance of 0.0016 the number of accidents per day is no longer equal to 0.0016 . Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis Ho and the alternative hypothesis Hi that we would use for this test.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The records of a casualty insurance company show that, in the past, its clients have had a mean of auto accidents per day with a variance of 1.8 . The actuaries of the company claim that the variance of 0.0016 the number of accidents per day is no longer equal to 0.0016 . Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis Ho and the alternative hypothesis Hi that we would use for this test.
-----------
Ho: sigma^2 = 1.8
Ha: sigma^2 is not equal to 1.8
=====================================
Cheers,
Stan H.
RELATED QUESTIONS
Determining null and alternative hypotheses
The records of a casualty insurance company... (answered by stanbon)
An insurance company checks police records on 500 randomly selected auto accidents and... (answered by stanbon)
An insurance company noted that out of every 100 auto accidents in a small city, there... (answered by ewatrrr)
Can you please help with this?
An insurance company checks police records on 600... (answered by Boreal)
A company studied the number of lost-time accidents occurring at its Brownsville, Texas,... (answered by ikleyn)
Natasha’s family has advised her not to depend completely on the insurance that her... (answered by greenestamps)
A car insurance plan has the expected mean annual payment to a client μ = $950 and the... (answered by Theo)
After analyzing its customer records, a rental car company found that approximately 2% of (answered by edjones)
1. The mean annual cost of auto insurance is $939. Assume a standard deviation of $245.
(answered by bjcarpio)