Question

# The mean annual premium for automobile insurance in the United States is \$1,491. Being from Pennsylvania,...

The mean annual premium for automobile insurance in the United States is \$1,491. Being from Pennsylvania, you believe automobile insurance is cheaper there and wish to develop statistical support for your opinion. A sample of 25 automobile insurance policies from the state of Pennsylvania showed a mean annual premium of \$1,432 with a standard deviation of s = \$150. If required, enter negative values as negative numbers.

a. Develop a hypothesis test that can be used to determine whether the mean annual premium in Pennsylvania is lower than the national mean annual premium.

b. What is a point estimate of the difference between the mean annual premium in Pennsylvania and the national mean (to the nearest dollar)?
\$

c. At α = .05, test for a significant difference by completing the following.

Calculate the value of the test statistic (to 2 decimals).

The p-value is

- Select your answer -less than .005between .005 and .01between .01 and .025between .025 and .05between .05 and .10between .10 and .20greater than .20Item 5

the population mean auto premium is higher/lower in Penn than the national mean.