Question #2 / 15 The records of a casualty insurance company show that, in thepa
ID: 2954380 • Letter: Q
Question
Question #2 / 15
The records of a casualty insurance company show that, in thepast, its clients have had a mean of 17.1 auto accidents per daywith a standard deviation of 0.04 . The actuaries of the companyclaim that the standard deviation of the number of accidents perday is no longer equal to 0.04. Suppose that we want to carry out ahypothesis test to see if there is support for the actuaries'claim. State the null hypothesis and the alternative hypothesisthat we would use for this test.
ANSWER:
H0:
H1:
Explanation / Answer
The test hypothesis is Ho:=0.04 Ha: not equal 0.04