Insurance: Hail Damage Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail

(Reference: Agricultural Statistics, U.S. Department of Agriculture). An insurance company is studying wheat hail damage claims in Weld County, Colorado. A random sample of 16 claims in Weld County gave the following data (% wheat crop lost to hail).

15 8 9 11 12 20 14 11 7 10 24 20 13 9 12 5 The sample mean is x 512.5%. Let x be a random variable that represents the percentage of wheat crop in Weld County lost to hail. Assume that x has a normal distribution and s 5 5.0%. Do these data indicate that the percentage of wheat crop lost to hail in Weld County is different (either way) from the national mean of 11%?

Use a 5 0.01.

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