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An insurance company would like to estimate the average amount claimed by its policyholders over the past year. A random sample of 300 policyholders was
An insurance company would like to estimate the average amount
claimed by its policyholders over the past year. A random sample of 300 policyholders
was chosen, whose observed sample mean was $739.98 and whose sample
standard deviation was $312.70.
The company's primary concern is to avoid underestimating the average amount claimed by its policyholders. Determine a value b so that the insurance company is 95% confident that the average amount claimed by its policyholders is b or less.
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