Question

A company has found that the proportion of claims made on travel insurance policies of up to 30 days to Europe is 0.2586. It examines a sample of 250 policies and tries to find the probability that the proportion of claims made for these policies is more than 0.25.

What Z value should it use to calculate this probability? Give your answer correct to four decimal places.

Answer 1

Given Probability is 0.25

The tabular value of z from this probability is $(1-0.25)=0.75$

Check The value For Which value of z and degree of freedom is $(30-1) i.e. 29$

The value of z is 0.0045.