The mean annual premium for automobile insurance in the United States is $1503 (Insure.comwebsite, March 6, 2014). Being from Pennsylvania, you believe automobile insurance is cheaper there and wish to develop statistical support for your opinion. A sample of 25 automobile insurance policies from the state of Pennsylvania showed a mean annual premium of $1440 with a standard deviation ofs= $165.

If required, enter negative values as negative numbers.

a.Develop a hypothesis test that can be used to determine whether the mean annual premium in Pennsylvania is lower than the national mean annual premium.

H0:-

Ha:-

b.What is a point estimate of the difference between the mean annual premium in Pennsylvania and the national mean (to the nearest dollar)?

$

c.At= .05, test for a significant difference by completing the following.

Calculate the value of the test statistic (to 2 decimals).

D. Thep-value is-

What is your conclusion?