Question

An insurance analyst working for a car insurance company would like to determine the proportion of accident claims covered by the company. A random sample of 200 claims shows that the insurance company covered 80 accident claims and did not cover 120 claims. Construct a 90 percent confidence interval estimate of the true proportion of claims covered by the insurance company. [.360, .440] [.343, .457] [.372, .428] [.356, .444]

Answer 1

n=200 80 accident Claims are covered 120 accident claims are not covered 90% CI for troue proportion of claim - Covered by Insurance Company x - covered Sampte not ? = 2 propastion 0.40 - - =o.no Standard error Je = R41) _ n- lauflo.4) Vlow ----- - - ---- e_063464) margin of esmor f = y se t6u5 to-osuth) (E = 0.057 90% cIP = ê te - 7060_6.057 10.343, 0.467 - 0.343. C. P < 0.457 option (2