Car insurance premiums are an essential aspect of vehicle ownership, with comprehensive coverage providing protection against various risks such as theft, accidents, and damage. For owners of medium-sized cars, determining the average monthly premium is crucial for both budgeting and assessing the fairness of rates in the insurance market. Analysing the average premium helps insurers set competitive rates while giving consumers insight into their financial obligations. For a random sample of 28 owners of medium-sized cars, it was found that their average monthly car insurance premium for comprehensive cover was R356. Assume that the sample standard deviation is R44 per month and that insurance premiums are approximately normally distributed. Find the 95% confidence interval for the average monthly comprehensive car insurance premium paid by all owners of medium sized cars. Interpret the result.
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