Question

Oman Insurance company took a random sample of 91 insurance claims paid out during a 1-year period. The resulting 95% co...


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Oman Insurance company took a random sample of 91 insurance claims paid out during a 1-year period. The resulting 95% confidence interval for the mean claim payment was (496 Dhs, 2,166 Dhs). Find the sample mean used when computing the interval. Round your answer to one decimal place.

Answer

The given information is

n=91

Confidence level is 

α=0.05

from the confidence level the critical value is 

zc= 1.96 (from statistical table)

 

To find the sample mean 

The average of upper bound and lower bound of the confidence interval is 

Average=(upper bound + lower bound)/2

=(2166+496)/2

=1331

The sample mean is 1331

The confidence interval form sample mean is

sample mean- lower bound=1331-496=835

and

upper bound -sample mean=2166-1331=835

Therefore,

sample mean is 1331

 

 

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