81. Online insurance, part 2. In Exercise 79, we saw summary statistics for 10 drivers’ car insurance premiums quoted by a local agent and an online company. Here are displays for each company’s quotes and for the difference (Local – Online):

a) Which of the summaries would help you decide whether the online company offers cheaper insurance? Why?

b) The standard deviation of PriceDiff is quite a bit smaller than the standard deviation of prices quoted by either the local or online companies. Discuss why.

c) Using the information you have, discuss the assumptions and conditions for inference with these data.

Transcribed Image Text:

1250 Premium ($) 1000 2 # of Premiums T 750 L 500 Local -400 -200 Online 0 Price Diff ($) 200