Help With Statistics Question? Need help!

Posted on 2016-09-23 18:40:00 in Statistics by VICTOR

Can someone tell me what my population 1 and 2 are? As well as my research and null hypothesis? thanks in advance! 

An insurance company is reviewing its current policy rates. When originally setting the rates they believed that the average claim amount was $1,800. They are concerned that the true mean is higher than this, because they could potentially lose a lot of money. They randomly select 40 claims, and calculate a sample mean of $1,950. Assuming that the standard deviation of claims is $500, and set α=.05, test to see if the insurance company should be concerned. Make sure to state your null and alternative hypotheses and use an illustration to demonstrate how you came up with your conclusion. Hint: one-tailed test.

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