The president of the American Insurance Institute wants to compare the yearly costs of auto insurance offered...

90.2K

Verified Solution

Question

Statistics

The president of theAmerican Insurance Institute wants to compare the yearly costs ofauto insurance offered by two leading companies. He selects asample of 15 families, some with only a single insured driver,others with several teenage drivers, and pays each family a stipendto contact the two companies and ask for a price quote. To make thedata comparable, certain features, such as the deductible amountand limits of liability, are standardized. The data for the sampleof families and their two insurance quotes are reported below.

At the 0.10significance level, can we conclude that there is a difference inthe amounts quoted? Hint: For the calculations, assume the\"Midstates Car Insurance\" as the first sample.

Midstates CarGecko Mutual
FamilyInsuranceInsurance
Becker$2,090$1,610
Berry1,6831,247
Cobb1,4022,327
Debuck1,8301,367
DuBrul9301,461
Eckroate6971,789
German1,7411,621
Glasson1,1291,914
King1,0181,956
Kucic1,8811,772
Meredith1,5711,375
Obeid8741,527
Price1,5791,767
Phillips1,5771,636
Tresize8601,188

1. State the decisionrule for 0.10 significance level: H0:μd = 0 H1:μd ≠ 0. (Negative valuesshould be indicated by a minus sign. Round your answers to 3decimal places.)

Reject H0 if T<_______ or t> _________

2. Compute the teststatistic. (Negative value should be indicated by a minussign. Round your answer to 2 decimal places.)

The test statistic is___________

3. State your decisionabout the null hypothesis.

- Do not reject H0

- Reject H0

Answer & Explanation Solved by verified expert
4.5 Ratings (800 Votes)
Using Excel Go to Data select Data Analysischoose    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students