An insurance company evaluates many variables about a person before deciding on an appropriate rate for automobile insurance.A representative from a local insurance agency selected a random sample of 15 insured drivers and recorded the number of claims each made in the last 3 years.Based on this information,which of the following will you construct to learn about the mean number of claims made by the company's customer?
A)Confidence interval estimate for the mean using the standard normal distribution.
B)Confidence interval estimate for the mean using the Student's t distribution.
C)Confidence interval estimate for the proportion using the standard normal distribution.
D)Confidence interval estimate for the difference between two means using the standard normal distribution.

Question

Quizplus · Accepted Answer

To learn about the mean number of claims made by the company's customers, a confidence interval estimate for the mean using the Student's t distribution is appropriate since the sample size is small (n=15) and the population standard deviation is unknown.

An Insurance Company Evaluates Many Variables About a Person Before