Automobile Insurance Premiums. The average annual premium for automobile insurance in the United States is $1503. The following annual premiums ($) are representative of the website’s findings for the state of Michigan. 1905 3112 2312 2725 2545 2981 2677 2525 2627 2600 2370 2857 2962 2545 2675 2184 2529 2115 2332 2442 Assume the population is approximately normal. a. Provide a point estimate of the mean annual automobile insurance premium in Michigan. b. Develop a 95% confidence interval for the mean annual automobile insurance premium in Michigan. c. Does the 95% confidence interval for the annual automobile insurance premium in Michigan include the national average for the United States? What is your inter- pretation of the relationship between auto insurance premiums in Michigan and the national average?
Automobile Insurance Premiums. The average annual premium for automobile
insurance in the United States is $1503. The following annual premiums ($) are
representative of the website’s findings for the state of Michigan.
1905 3112 2312
2725 2545 2981
2677 2525 2627
2600 2370 2857
2962 2545 2675
2184 2529 2115
2332 2442
Assume the population is approximately normal.
a. Provide a point estimate of the mean annual automobile insurance premium in
Michigan.
b. Develop a 95% confidence interval for the mean annual automobile insurance
premium in Michigan.
c. Does the 95% confidence interval for the annual automobile insurance premium in
Michigan include the national average for the United States? What is your inter-
pretation of the relationship between auto insurance premiums in Michigan and the
national average?
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