13. Auto Insurance The cost of auto insurance in California is dependent on many variables, such as...

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13. Auto Insurance The cost of auto insurance in California is dependent on many variables, such as the city you live in, the number of cars you insure, and your insurance company. The website www.insurance.ca.gov reports the annual 2017 standard premium for a male, licensed for 6–8 years, who drives a Honda Accord 20,000 to 24,000 kilometers per year and has no violations or accidents

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a. Why would you expect these pairs of observations to be dependent?

b. Do the data provide sufficient evidence to indicate that there is a difference in the average annual premiums between Allstate and 21st Century insurance?
Test using a 5.01.

c. Find the approximate p-value for the test and interpret its value.

d. Find a 99% confidence interval for the difference in the average annual premiums for Allstate and 21st Century insurance.

e. Can we use the information in the table to make valid comparisons between Allstate and 21st Century insurance throughout the United States? Why or why not?

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Related Book For  book-img-for-question

Introduction To Probability And Statistics

ISBN: 9780357114469

15th Edition

Authors: William Mendenhall Iii , Robert Beaver , Barbara Beaver

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