SOLUTION: 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, s
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Question 208700This question is from textbook
: 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 amount deductible and limits of liability, are standardized.
The sample information is reported below. At the .10 significance level, can we
conclude that there is a difference in the amounts quoted?
Family Progressive GEICO
Becker $2,090 $1,610
Berry 1,683 1,247
Cobb 1,402 2,327
Debuck 1,830 1,367
DuBrul 930 1,461
Eckroate 697 1,789
German 1,741 1,621
Glasson 1,129 1,914
King 1,018 1,956
Kucic 1,881 1,772
Meredith 1,571 1,375
Obeid 874 1,527
Price 1,579 1,767
Phillips 1,577 1,636
Tresize 860 1,188
This question is from textbook
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
At the .10 significance level, can we
conclude that there is a difference in the amounts quoted?
Family Progressive GEICO
Becker $2,090 $1,610
Berry 1,683 1,247
Cobb 1,402 2,327
Debuck 1,830 1,367
DuBrul 930 1,461
Eckroate 697 1,789
German 1,741 1,621
Glasson 1,129 1,914
King 1,018 1,956
Kucic 1,881 1,772
Meredith 1,571 1,375
Obeid 874 1,527
Price 1,579 1,767
Phillips 1,577 1,636
Tresize 860 1,188
--------------------
Find the mean charge for each of the companies.
---------------------
Ho: u(prog) - u(Gei) = 0
Ha: they are not equal
------------------
Run a T-test to get a test statistic and p-value
-------------
If the p-value is greater than 10% do not reject Ho.
========================================================
Cheers,
Stan H.
PS: Reply to stanbon@comcast.net since the algebra.com feedback
program is not working.
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