An insurance company evaluates many variables about a person before deciding on an appropriate rate for automobile insurance. A representative from a local insurance agency selected a random sample of 15 insured drivers and recorded the amount of claims each made in the last 3 years. Based on this information, which of the following will you construct to learn about the mean amount of claims made by the company's customer?
A) Confidence interval estimate for the proportion using the standard normal distribution
B) Confidence interval estimate for the mean using the standard normal distribution
C) Confidence interval estimate for the difference between two means using the standard normal distribution
D) Confidence interval estimate for the mean using the Student's t distribution
Q. 2Data on the amount of money made in a year by 1,000 families in a small town were collected. You want to know if the money made is normally distributed. Which of the following would you use?
A) Bar chart B) Boxplot C) Scatter plot D) Time-series plot
Q. 3Data on the amount of money made in a year by 1,000 families in a small town were collected. You want to know how much each family will get if the money made by all the 1,000 families is pooled together and then evenly redistributed back to them. Which of the following would you compute?
A) Interquartile range B) Coefficient of correlation
C) Arithmetic mean D) Median
Q. 4Every spring semester, the School of Business coordinates with local business leaders a luncheon for graduating seniors, their families, and friends. Corporate sponsorship pays for the lunches of each of the seniors, but students have to purchase tickets to cover the cost of lunches served to guests they bring with them. Data on the number of guests each graduating senior invited to the luncheon and the number of graduating seniors in each category were collected. You want to know the most popular number of guests brought by the graduating seniors. Which of the following will you compute?
A) Interquartile range B) Median C) Mode D) Arithmetic mean
Q. 5Data on the amount of money made in a year by 1,000 families in a small town were collected. You want to know the difference in the amount of money made in that year by the middle 50 of the 1,000 families. Which of the following would you compute?
A) Arithmetic mean B) Coefficient of correlation
C) Interquartile range D) Median
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