An insurance company, based on past experience, estimates the mean damage for a natural disaster in its area is $5,000. After introducing several plans to prevent loss, it randomly samples 200 policy holders and finds the mean amount per claim was $4,800 with a standard deviation of $1,300, Does it appears the prevention plans were effective in reducing the mean amount of a claim? Use the significance level.© BrainMass Inc. brainmass.com June 3, 2020, 10:37 pm ad1c9bdddf
Level of significance α ...
The solution examines one step tests for hypothesis The solution determines if the prevention plans were effective in reducing the mean amount of claim.