Question

Records from previous years for a casualty insurance company show that its clients average a combined total of 1.7 auto accidents per day, with a standard deviation of 0.56. The actuaries of the company claim that the current standard deviation, o, of the number of accidents per day is not equal to 0.56. A random sample of 10 recent days had a mean of 2 accidents per day with a standard deviation of 0.26. If we assume that the number of accidents per day is approximately normally distributed, is there sufficient evidence to conclude, at the 0.05 level of significance, that the actuaries are correct? Perform a two-tailed test. Then fill in the table below Carry your intermediate computations to at least three decimal places and round your answers as specified in the table. o P The nupothesis x S The alternative hypothesis 5 8 D=0 The type of test statistic (Choose one) 020 > The value of the test statistici (Round to at least three decimal places) 0 X 5 ? The two critical values at the 0.05 level of significance (Round to at least three decimallace and I

Answer 1

We have given that. 0.56 u = 1.7 auto accidents n=10 recent days X-2 accidents peo day S = 0.26 0.05 The huu hypothesis : H:02 0.562 Hon=0.56 VS 2 The alternative hypothesis: H:02 -0.56 Hi :0 +0.56 8 2 Test statistic X?, Ts Cn-D) CD (10-1) 6343 =) 9(0.464)? ə 1.9376 q xicte 0 1.9376 Cal

Can suppost the claim that the standaad Combined total of auto accidents Please give a Thums-up. Thank you. critical value & I 212 X ht.212 101 0.05/2 , 02: 9.0.025 x2.0025 2.700 (x² table value] 9,0.025 d 2 Х x2 ht, 1-1/2 107, 1-0.05 ,2 91 0.975 19.023 X (x² table value] 0975 L x2 x2 Cal nt, 4/2 Accept Ho. Yes, we deviation of per day ditters from 0.56