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The records of a casualty insurance company show that, in the past, its clients have had a mean of1.8 auto accidents per day with a

The records of a casualty insurance company show that, in the past, its clients have had a mean of1.8

auto accidents per day with a variance of0.0025

. The actuaries of the company claim that the variance of the number of accidents per day is no longer equal to0.0025

. Suppose that we want to carry out ahypothesis testto see if there is support for the actuaries' claim. State thenull hypothesisH

0

and thealternative hypothesisH

1

that we would use for this test.

H

0

:

H

1

:

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