Question
In: Statistics and Probability
The president of the American Insurance Institute wants tocompare the yearly costs of auto insurance...
The president of the American Insurance Institute wants to compare the yearly costs of auto insurance offered by two leading companies. He selects a sample of 15 families, some with only a single insured driver, others with several teenage drivers, and pays each family a stipend to contact the two companies and ask for a price quote. To make the data comparable, certain features, such as the deductible amount and limits of liability, are standardized. At the .10 significance level, can we conclude that there is a difference in the amounts quoted?
| 2090 | 1610 |
| 1683 | 1247 |
| 1402 | 2327 |
| 1830 | 1367 |
| 930 | 1461 |
| 697 | 1789 |
| 1741 | 1621 |
| 1129 | 1914 |
| 1018 | 1956 |
| 1881 | 1772 |
| 874 | 1527 |
| 1571 | 1375 |
| 1579 | 1767 |
| 1577 | 1636 |
| 860 | 1188 |
Solutions
Expert Solution
| Car Insurance (A) | Mutual insurance (B) | Difference (D=A-B) |
| 2090 | 1610 | 480 |
| 1683 | 1247 | 436 |
| 1402 | 2327 | -925 |
| 1830 | 1367 | 463 |
| 930 | 1461 | -531 |
| 697 | 1789 | -1092 |
| 1741 | 1621 | 120 |
| 1129 | 1914 | -785 |
| 1018 | 1956 | -938 |
| 1881 | 1772 | 109 |
| 1571 | 1375 | 196 |
| 874 | 1527 | -653 |
| 1579 | 1767 | -188 |
| 1577 | 1636 | -59 |
| 860 | 1188 | -328 |
Here, we should use the paired t-test because mid states car insurance and Gecko mutual insurance are dependent because both the data are selected from the same families.
orchestra answered 2 years agoRelated Solutions
The president of the American Insurance Institute wants to compare the yearly costs of auto insurance...
The president of the
American Insurance Institute wants to compare the yearly costs of
auto insurance offered by two leading companies. He selects a
sample of 15 families, some with only a single insured driver,
others with several teenage drivers, and pays each family a stipend
to contact the two companies and ask for a price quote. To make the
data comparable, certain features, such as the deductible amount
and limits of liability, are standardized. The data for the sample...
Information from the American Institute of Insurance indicates that the mean amount of life insurance per...
Information from the American Institute of Insurance indicates
that the mean amount of life insurance per household in the United
States is $115,000 and standard deviation is $41,250.
a) If a random sample of 32 households are selected, what is the
shape of the sampling distribution of the sample means?
b) Specify the mean and standard deviation of the sampling
distribution of the sample means, for samples of size 32.
c) What is the probability that in a random sample...
Information from the American Institute of Insurance indicates that the mean amount of life insurance per...
Information from the American Institute of Insurance indicates
that the mean amount of life insurance per household in the United
States is $115,000 and standard deviation is $41,250.
a) If a random sample of 32 households are selected, what is the
shape of the sampling distribution of the sample means?
b) Specify the mean and standard deviation of the sampling
distribution of the sample means, for samples of size 32.
c) What is the probability that in a random sample...
Information from the American Institute of Insurance indicates the mean amount of life insurance per household...
Information from the American Institute of Insurance indicates
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What is the likelihood of selecting a sample with a mean of more
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Information from the American Institute of Insurance indicates the mean amount of life insurance per household...
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Information from the American Institute of Insurance indicates the mean amount of life insurance per household...
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Information from the American Institute of Insurance indicates the mean amount of life insurance per household...
Information from the American Institute of Insurance indicates
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shape of the distribution of the sample mean?
The distribution will be:
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