Question

Does where you live affect your insurance rate? The mean auto insurance rate for 29 drivers in a large city is $1,839 per car with a standard deviation of $315 while the mean rate for 23 drivers in a rural area is $1,648 with a standard deviation of $239. At α = 0.05, can we conclude that drivers in the large city pay higher insurance rates than those in the rural area, assuming the population variances are equal?

a. Calculate the test statistic. t=

Round to three decimal places if necessary

b. Determine the critical value(s) for the hypothesis test. +

Round to three decimal places if necessary

c. Conclude whether to reject the null hypothesis or not based on the test statistic

. Reject

Fail to Reject

Answer 1