Question
The average annual premium for automobile insurance in the U.S. is $1,503. The following annual premiums ($) are representative of the website's findings for the
The average annual premium for automobile insurance in the U.S. is $1,503. The following annual premiums ($) are representative of the website's findings for the state of Michigan. $1,905 $2,370 $2,184 $2,981 $2,725 $2,545 $2,332 $2,627 $2,677 $2,529 $3,112 $2,857 $2,600 $2,442 $2,545 $2,675 $2,962 $2,312 $2,525 $2,115 Assume the population is approximately normal. a) Provide a point estimate of the mean annual automobile insurance premium in Michigan. (SHOW RESULTS; you may use Excel; 0.5 point) b) Develop a 95% confidence interval for the mean annual automobile insurance premium in Michigan. (SHOW WORK; you may use Excel for key calculations; 0.5 point) c) Does the 95% confidence interval for the annual automobile insurance premium in Michigan include the national average for the U.S.? What is your interpretation of the relationship between auto insurance premiums in Michigan and the national average? (0.5 point)
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