Answer to Question #120472 in Statistics and Probability for Joseph Se

Question

1. An insurance company wants to estimate (using a confidence interval) its average claim amount using data from 20 randomly selected claims. Which of the following is false?

A. If the distribution of the sampled claim amounts is not extremely skewed, a T interval is appropriate.

B. The confidence interval can also be calculated using bootstrapping.

C. A confidence interval based on this sample is not accurate since the sample size is small.

D. The critical t-score, t* , has 19 degrees of freedom.

2. How does the shape of the t-distribution change as the sample size increases?

A. It becomes wider
B. It becomes more normal looking
C. It becomes flatter
D. It becomes skewed

Answer 1

Which of the following is false?

A. If the distribution of the sampled claim amounts is not extremely skewed, a T interval is appropriate. 

2. How does the shape of the t-distribution change as the sample size increases? 

B. It becomes more normal looking