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 of families and their two insurance quotes are reported in the table. Family Becker Berry Cobb Debuck Midstates Car Insurance $ 2,090 Gecko Mutual Insurance $ 1,610 1,683 1,247 1,402 2,327 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 Tresize 860 1,636 1,188 Click here for the Excel Data File At the 0.10 significance level, can we conclude that there is a difference in the amounts quoted? a. What are the null and alternate hypotheses? O Ho Hd=0; HH0 O Ho Hd 0; HHd=0 O Ho Hd=0; HHd=0 b. Compute the test statistic. (Negative amounts should be indicated by a minus sign. Round your answer to 3 decimal places.) Test statistic

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 of families and their two insurance quotes are
reported in the table.
Family
Becker
Berry
Cobb
Debuck
Midstates Car
Insurance
$ 2,090
Gecko Mutual
Insurance
$ 1,610
1,683
1,247
1,402
2,327
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
Tresize
860
1,636
1,188
Click here for the Excel Data File
At the 0.10 significance level, can we conclude that there is a difference in the amounts quoted?
a. What are the null and alternate hypotheses?
O Ho Hd=0; HH0
O Ho Hd 0; HHd=0
O Ho Hd=0; HHd=0
b. Compute the test statistic. (Negative amounts should be indicated by a minus sign. Round your answer to 3 decimal places.)
Test statistic
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Transcribed Image Text: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 of families and their two insurance quotes are reported in the table. Family Becker Berry Cobb Debuck Midstates Car Insurance $ 2,090 Gecko Mutual Insurance $ 1,610 1,683 1,247 1,402 2,327 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 Tresize 860 1,636 1,188 Click here for the Excel Data File At the 0.10 significance level, can we conclude that there is a difference in the amounts quoted? a. What are the null and alternate hypotheses? O Ho Hd=0; HH0 O Ho Hd 0; HHd=0 O Ho Hd=0; HHd=0 b. Compute the test statistic. (Negative amounts should be indicated by a minus sign. Round your answer to 3 decimal places.) Test statistic <Prev 6 of 24 Next
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