Question 8 (1 point) Question 8 Unsaved Suppose the national average dollar amou

Question

Question 8 (1 point) Question 8 Unsaved Suppose the national average dollar amount for an automobile insurance claim is $766.08. You work for an agency in Michigan and you are interested in whether or not the state average is different from the national average. The hypotheses for this scenario are as follows: Null Hypothesis: = 766.08, Alternative Hypothesis: 766.08. You take a random sample of claims and calculate a p-value of 0.0013 based on the data, what is the appropriate conclusion? Conclude at the 5% level of significance. Question 8 options: 1) The true average claim amount is significantly higher than $766.08. 2) The true average claim amount is significantly different from $766.08. 3) The true average claim amount is equal to $766.08. 4) The true average claim amount is significantly less than $766.08. 5) We did not find enough evidence to say a significant difference exists between the true average claim amount and $766.08.

Explanation / Answer

Here p value is less than 0.05 . We reject the null hypothesis.

We may concluded that the true average claim amount is significantly different from 766.08

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