Question

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 has displays for each company's quotes and for the difference.

Variable Count Mean
StdDev

Local 10 795.3 226.994

Online 10 732.7 303.131

Price Diff 10 62.6 173.762

Test an appropriate hypothesis to see if there is evidence that
drivers might save money by switching to the online company.

Identify the null and alternative hypotheses.

Calculate the test statistic.

Calculate the P-value.

State the conclusion. Assume alpha equals0.05.

Local Online PriceDiff

557 377 180

861 566 295

461 486 -25

1221 1133 88

600 638 -38

1013 1242 -229

776 450 326

843 802 41

913 1022 -109

708 611 97

Answer #1

Here we need to compare more than three population means so one way ANOVA will be used.

Hypotheses are:

H0: All companies have same average cost.

Ha: Not all companies have same average cost.

Hypotheses in symbol:

Following is the output of one way ANOVA:

The test statistics is

F = 28.51

The p-value is: 0.0000

Since p-value is less than 0.05 so we reject the null hypothesis. That is there is evidence to conclude that drivers might save money by switching to the online company.

An insurance agent randomly selected 10 of his clients and
checked online price quotes for their policies. His summaries of
the data are shown, where Diff is Local-Online.
Variable
Count
Mean
StdDev
Local
10
901.700
372.804
Online
10
844.300
308.623
Diff
10
57.4000
180.760
Test an appropriate hypothesis to see if there is evidence that
drivers might save money by switching to an online agent. Use
alpha=0.050
dentify the null and alternative hypotheses. Choose the correct
answer below.
A.
Upper...

Table 2. The
mean response times per block for each participant that was
tested.
2f
2g
2i
2j
2e
/3
Blocks
average of
average of
average of
/6
/6
/6
/6
Participants
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
8 & 10
11 & 13
14 & 16
Difference score
t-value
p (1-tailed)
p (2-tailed)
1
749
703
776
502
745
875
811
688
833
745
557
1136
658
529
794...

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