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Summary statistics for 10 drivers' car insurance premiums quoted by a local agent and an online company are shown in the table to the right.
Summary statistics for 10 drivers' car insurance premiums quoted by a local agent and an online company are shown in the table to the right. The accompanying table have displays for each company's quotes and for the difference (Local Online). Complete parts a through c. a Click the link to View the display of the boxplot and histogram for insurance premiums. a) Which of the summaries would help you decide whether the online company offers cheaper insurance? Why? Choose the correct answer below. 0 A. The boxplot would help because the spread of the data is important. O B. The histogram would help because the difference in price is important. O C. The boxplot would help because the difference in price is important. 0 D. The histogram would help because the spread of the data is important. 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. Choose the correct answer below. 0 A. Some of the values of PriceDiff are negative. 0 B. Insurance cost is based on risk, so drivers are likely to see similar quotes from each company, making the differences smaller, which leads to a smaller standard deviation. 0 C. Subtracting two random variables reduces the standard deviation. '21 Variable Count Mean Sthev Local 10 799.200 229.281 Online 10 753.300 259.267 PriceDiff 10 45.9000 175.663
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