Math Problem Statement
The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.7 auto accidents per day with a standard deviation of 0.06 The actuaries of the company claim that the standard deviation of the number of accidents per day is no longer equal to 0.06 . Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null H0 hypothesis and the alternative hypothesis H1 that we would use for this test. :
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Solution
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Math Problem Analysis
Mathematical Concepts
Hypothesis Testing
Standard Deviation
Two-Tailed Test
Formulas
Null Hypothesis: H₀: σ = 0.06
Alternative Hypothesis: H₁: σ ≠ 0.06
Theorems
Chi-Square Distribution
Suitable Grade Level
College-Level Statistics
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