Question

(1 point) An insurance company states that at least 85% of its claims are settled within 30 days. A consumer group selected a random sample of 66 of the company's claims to test this statement. They found that 55 of the claims were settled within 30 days. Does the consumer group have evidence to disbelieve the insurance company's claim?

1. Write the hypotheses to test if the rate of claims settled within 30 days is less than 85%.

H0H0: The proportion of claims settled within 30 days  ? is equal to is less than is more than  85%.

HAHA: The proportion of claims settled within 30 days  ? is equal to is less than is more than  85%.

2. To setup a simulation for this situation, we let each claim be represented with a card. We take 100 cards,  black cards represent claims that are settled within 30 days and  red cards represent claims that take longer than 30 days to settle. Shuffle the cards and draw  ? with without  replacement  cards representing the random sample of claims. Calculate the proportion of  ? black red  cards in the  ? sample deck  and call it p^simp^sim . Repeat 10,000 times and plot the resulting sample proportions. The p-value will be the proportion of simulations where p^simp^sim is  ? less than or equal to greater than or equal to unequal to   .

3. Use the One Proportion Resampling test app embedded here to perform the simulation. Draw at least 3000 samples. Report your p-value from the app here, rounded to four decimal places:

4. Based on the p-value, we have:
A. strong evidence
B. some evidence
C. little evidence
D. very strong evidence
E. extremely strong evidence
that the null model is not a good fit for our observed data.

Answer 1

According to HomeworkLib rules I have solved first question