A car insurance company tells its prospective customers that they can save an average of at least $100 per year by switching to their insurance company. Studies reveal that 130 random prospective customers would save an average of $97.50 per year with a standard deviation of $27.50. Is the insurance company's claim believable?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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A car insurance company tells its prospective customers that they can save an average of at least $100 per year by switching to their insurance company. Studies reveal that 130 random prospective customers would save an average of $97.50 per year with a standard deviation of $27.50. Is the insurance company's claim believable? 

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