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Records from previous years for a casualty insurance company show that its clients average combined total of 1.8 auto accidents per day, with a


 

Records from previous years for a casualty insurance company show that its clients average combined total of 1.8 auto accidents per day, with a variance of 0.20. The actuaries of the company claim that the current variance, of, of the number of accidents per day is greater than 0.20. A random sample of 14 recent days had a mean of 2 accidents per day with a variance of 0.42. If we assume that the number of accidents per day is approximately normally distributed, is there sufficient evidence to conclude, at the 0.05 level of significance, that the actuaries are correct? Perform a one-tailed test. Then fill in the table below. Carry your intermediate computations to at least three decimal places and round your answers as specified in the table. (If necessary, consult a list of formulas.) HO O The null hypothesis: S The alternative hypothesis: Do The type of test statistic: (Choose one) The value of the test statistic; (Round to at least three. decimal places.) 10 The critical value at the 0.05 level of significance: 0 (Round to at least three decimal places.) Can we support the claim that the current variance of the number of accidents per day is greater than 0.20? Yes No I x 0=0 X OSO Olo 020 >O

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