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In: Statistics and Probability

Specialty Auto Insurance wishes to compare the repair costs of moderatly damaged cars at two repair...

Specialty Auto Insurance wishes to compare the repair costs of moderatly damaged cars at two repair shops. To do this they sent seven cars to both repair shops to get the repair costs. The data is shown below. At the 0.01 significance level, can we conclude if there is a difference in the average repair costs for the two repair shops? Show your hypotheses. Explain your findings in a text box to the right.

Car Repair Shop 1 Repair Shop 2
1 $7,100 $7,900
2 $9,000 $10,100
3 $11,000 $12,200
4 $8,900 $8,800
5 $9,900 $10,400
6 $9,100 $9,800
7 $10,300 $11,700

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