Question

Based on information from a large insurance company, 67% of all damage liability claims are made by single people under the age of 25. A random sample of 52 claims showed that 43 were made by single people under the age of 25. Does this indicate that the insurance claims of single people under the age of 25 is higher than the national percent reported by the large insurance company

Answer 1

Yes. This indicates that the insurance claims of single people under the age of 25 is higher than the national percent reported by the large insurance company.

Explanation:

Damage liability claims by single people under the age of 25 = 67%

Sample size = 52 claims

Claims made by single people under the age of 25 from the sample = 43 out of 52 claims

In percentage terms, the claims made by single people under the age of 25 from the sample = 43/52 = 83%

Since 83% > 67% (with a difference of 16%)