An insurance executive asserts that the mean amount paid by his
firm for personal injury claims resulting from automobile accidents
is $18,155. As the actuary, you want to check the accuracy of
this assertion. You are given permission to sample randomly 56
cases involving personal injury. The sample mean is $19,400,
and past year's data indicate that σ =$2,357. Test the
executive's belief with significant influence of 0.01.
state and explain all 6 steps: state the hypothesis, choose the
statistical test, select the level of significance, compute the
statistical value, obtain the critical test value, interpret the
test
lastly, explain how to calculate the p-value