Question

An auto insurance company has 32,000 clients, and 5% of their clients submitted a claim in...

An auto insurance company has 32,000 clients, and 5% of their clients submitted a claim in the past year. We will take a sample 3,200 clients, and determine how many of them have submitted a claim in the past year.

a) What is the sampling distribution for the sample proportion?

b) Increased road accidents have caused an increase in these claims. What is the probability that the proportion of claims in the sample is more than 9%?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Y 3200 and p o.oc PLE-P) 7 mp Z is and mp 3 20 0 The amptn

Add a comment
Know the answer?
Add Answer to:
An auto insurance company has 32,000 clients, and 5% of their clients submitted a claim in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 4. Insurance companies charge clients under 25 more for auto insurance than clients over 25. They...

    4. Insurance companies charge clients under 25 more for auto insurance than clients over 25. They claim this is because clients under 25 have more accidents. A random sample of 40 drivers under 25 had a mean of 1.2 accidents per year with a standard deviation of .1. A sample of 40 drivers over 25 had a mean of .94 accidents per year with a standard deviation of .2. From this data can we conclude the Insurance companies are correct...

  • State Farm Insurance studies show that in Colorado, 55% of the auto insurance claims submitted for...

    State Farm Insurance studies show that in Colorado, 55% of the auto insurance claims submitted for property damage are submitted by males under 25 years of age. Suppose 10 property damage claims involving automobiles are selected at random. (a) Let r be the number of claims made by males under age 25. Make a histogram for the r-distribution probabilities. (b) What is the probability that six or more claims are made by the males under age 25? (c) What is...

  • State Farm Insurance studies show that in Colorado, 45% of the auto insurance claims submitted for...

    State Farm Insurance studies show that in Colorado, 45% of the auto insurance claims submitted for property damage were submitted by males under 25 years of age. Suppose 12 property damage claims involving automobiles are selected at random. (a) Let r be the number of claims made by males under age 25. Make a histogram for the r-distribution probabilities. (b) What is the probability that three or more claims are made by males under age 25? (Use 3 decimal places.)...

  • The records of a casualty insurance company show that, in the past, its clients have had...

    The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.9 auto accidents per day with a variance of 0.0025. The actuaries of the company claim that the variance of the number of accidents per day is no longer equal to 0.0025. Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H, and the alternative hypothesis...

  • The records of a casualty insurance company show that, in the past, its clients have had...

    The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.7 auto accidents per day with a standard deviation of 0.05. The actuaries of the company claim that the standard deviation of the number of accidents per day is no longer equal to 0.05. Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H, and the...

  • #6. A car insurance company has high-risk, medium-risk, and low-risk clients, who have, respectively, probabilities.04,.02, and.01...

    #6. A car insurance company has high-risk, medium-risk, and low-risk clients, who have, respectively, probabilities.04,.02, and.01 of filing claims within a given year. The proportions of the numbers of clients in the three categories are .15, .25, and.60, respectively (a) What is the probability that a random client doesn't file a claim? (b) What proportion of the claims filed each year come from high-risk clients? (c) What is the probability that a random client who didn't file a claim is...

  • A company makes auto batteries. They claim that 81% of their LL70 batteries are good for 70 month...

    1. 2. 3. A company makes auto batteries. They claim that 81% of their LL70 batteries are good for 70 months or longer. Assume that this claim is true. Let p be the proportion in a random sample of 70 such batteries that are good for 70 months or more. a. What is the probability that this sample proportion is within 0.02 of the population proportion? Round your answer to two decimal places b. What is the probability that this...

  • AICUS (Auto Insurance Company of the United States) paid out $62,750,000 in car insurance claims last...

    AICUS (Auto Insurance Company of the United States) paid out $62,750,000 in car insurance claims last year. During that year, the company had 100,000 clients and charged each client $600 for insurance. Nine hundred and ninety-nine thousand, five hundred of its clients did not get into any accidents. We will call this the low-risk group. Two-hundred-and-fifty clients had minor accidents that cost $1,000 each. Call this the moderate-risk group. An additional 250 clients had major accidents involving lawsuits that cost...

  • An insurance company wants to know the proportion of clients who have had claims within the...

    An insurance company wants to know the proportion of clients who have had claims within the last year. They randomly select 100 clients from a database of all clients and checks their basic information. They find that 5% of the clients had claims within the last year. Can we create a confidence interval for the relevant parameter? Select one: O a. Yes. b. No, because it wasn't a random sample. c. No, because n(p-hat) < 10 or n(q-hat) < 10....

  • Richard has been Insurance: Auto The Mountain States Office of State Farm Insurance Company reports that...

    Richard has been Insurance: Auto The Mountain States Office of State Farm Insurance Company reports that approximately 85% of all automobile damage liability claims are made by people under 25 years of age. A random sample of five automobile insurance liability claims is under study. (a) Make a histogram showing the probability that r = 0 to 5 claims are made by people under 25 years of age. (b) Find the mean and standard deviation of this probability distribution. For...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT