A large insurance company wanted to estimate u, 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. From past experience the population standard deviation is assumed to be $1350. Which of the following is the point estimate for u? A. $225 B. $2875 C. $1350 D. None of the above.

Answer: B. $2875Step-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.