Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This quiz: 6 point(s) possible {93 Question 3 of 6 Submit quiz This question: 1 point(s) possible After seeing commercials claiming one can get cheaper

image text in transcribed
This quiz: 6 point(s) possible {93 Question 3 of 6 Submit quiz This question: 1 point(s) possible After seeing commercials claiming one can get cheaper car insurance online, a local insurance agent was concerned that he might lose customers. To investigate, he randomly selected profiles (type of car, coverage, driving record, etc.) for 10 of his clients and checked online price quotes for their policies. The comparisons are shown in the accompanying table. Also, his statistical software produced the given summaries. At first, the insurance agent wondered whether there was some kind of mistake in this output. He thought the Pythagorean Theorem of Statistics should work for nding the standard deviation of the price differencesin other words, that SD(Loca| Online) = JSD2(LocaI) + SD2(On|ine). But when he checked, he found that 1/ (229.281)2 + (256.267)2 = 343.864, not 175.663 as given by the software. Tell him where his mistake is. a Click the icon to view the data table. a Click the icon to view the software output. v Adding |:l requires that the variables be |:l These price quotes are for the same cars, so they are El Drivers quoted high insurance premiums by the local company will be likely to get a |:| rate from the online company

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Classical Mechanics

Authors: R Douglas Gregory

1st Edition

0511159242, 9780511159244

More Books

Students also viewed these Mathematics questions