Answer: B. $2875
Step-by-step explanation:
We know that best point estimate of population mean[tex](\mu)[/tex] is the sample mean[tex](\overline{x})[/tex] .
Given : A large insurance company wanted to estimate [tex]\mu[/tex], the mean claim size (in 5) on an auto insurance policy.
A random sample of 225 claims was chosen and it was found that the average claim size was $2875.
i.e. Sample mean [tex]\overline{x}=\$2875[/tex]
That means , the point estimate for [tex]\mu=\$2875[/tex]
Hence , the correct answer is option B . $2875.
