Question
In: Statistics and Probability
A local insurance agent believed that his local insurance rates were lower than the competing online...
A local insurance agent believed that his local insurance rates were lower than the competing online insurance price rates. For 10 of his clients, he checks the online price quote against their own price quote (local) for their policies. The summary statistics are found in the table below (PriceDiff = Local – Online).
| Variable | count | mean | standard dev |
| local | 10 | 799.2 | 229.3 |
| online | 10 | 753.3 | 256.3 |
| price diff | 10 | 45.9 | 175.7 |
a. State the conditions and what needs to be assumed for the appropriate hypothesis test.
b. State the hypotheses for the appropriate hypothesis test. Also, calculate the appropriate test statistic, including the degrees of freedom.
c. For the hypothesis test, you should get a p-value of 0.785. Write the p-value as a probability in terms of the test statistic. Also, draw and label the distribution of the test statistic (tdf) and properly label the p-value. I do not want a conclusion.
Solutions
orchestra answered 2 years agoRelated Solutions
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