CAS Exam MAS-I Fall 2019, Question 20
Study guide: Exam MAS-I
An insurance company has classified claims into 5 categories based on their severity.
The null hypothesis H_0 assumes the numbers of claims for Categories 1, 2, 3, 4 and 5 appear in the following ratios:
12 : 8 : 6 : 4 : 1In 2017, the insurance company recorded the numbers of claims as follows:
| Category | # of Claims |
|---|---|
| 1 | 1172 |
| 2 | 829 |
| 3 | 605 |
| 4 | 347 |
| 5 | 102 |
Calculate the Chi-square goodness-of-fit statistic.
- A) Less than 5.5
- B) At least 5.5, but less than 6.5
- C) At least 6.5, but less than 7.5
- D) At least 7.5, but less than 8.5
- E) At least 8.5
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