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Use the variable Annual.miles.drive to construct the confidence intervals for the estimate of the population mean (i.e., mean of annual miles driven), by
- Use the variable "Annual.miles.drive" to construct the confidence intervals for the estimate of the population mean (i.e., mean of annual miles driven), by gender, i.e. by male and female drivers, at 94% levels. Interpret your confidence intervals.
Data for female | |
Sample Mean | 9343.696329 |
Sample Standard Deviation | 3903.358099 |
Sample Size | 274 |
Confidence Level | 94% |
Confidence Interval for Female | |
Interval Lower Limit | 8900.2 |
Internal Upper Limit | 9787.2 |
The interpretation of these two tables above is that we are 94% confident that the population mean miles driven by females is between 8900.2 and 9787.2 miles.
Data for Male | |
Sample Mean | 9301.885749 |
Sample Standard Deviation | 4170.560769 |
Sample Size | 326 |
Confidence Level | 94% |
Confidence Interval for Male | |
Interval Lower Limit | 8867.4 |
Internal Upper Limit | 9736.3 |
The interpretation of these two tables above is that we are 94% confident that the population mean miles driven by males is between 8867.2 and 9763.3 miles.
- Did you make any assumptions when constructing your confidence intervals? If yes, which assumptions; if not, why?
- If insurance companies charge premiums based on the annual miles driven, based on your finding, is it warranted for insurance companies to charge male drivers higher premiums based on this data set? Explain
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