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In Order to Set Rates, an Insurance Company Is Trying

Question 21

Multiple Choice

In order to set rates, an insurance company is trying to estimate the number of sick days that full time workers at an auto repair shop take per year. A previous study indicated that the standard deviation was 2.8 days. How
Large a sample must be selected if the company wants to be 95% confident that the true mean differs from the
Sample mean by no more than 1 day?


A) 31
B) 141
C) 512
D) 1024

Correct Answer:

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