QuestionThe 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 variance of 0.0025 . The actuaries of the company claim that the variance of the number of accidents per day is no longer equal to 0.0025 . Suppose that we want to carry out a hypothesis.test to see if there is support for the actuaries' claim. State the null hypothesis and the alternative hypothesis that we would use for this test.
Studdy Solution
Define the alternative hypothesis .
The alternative hypothesis states that the variance of the number of auto accidents per day is not equal to the original variance.
The hypotheses for the test are:
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