An insurance company advertises that 90% of their accident claims are settled within 30 days. A consumer group randomly selects 104 of last year’s claims from the company’s files, and finds that only 89 of them were settled within 30 days. Is the company guilty of false advertising?

Question

08-02-2021
Mathematics

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An insurance company advertises that 90% of their accident claims are settled within 30 days. A consumer group randomly selects 104 of last year’s claims from the company’s files, and finds that only 89 of them were settled within 30 days. Is the company guilty of false advertising?

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