Question

A local insurance company is analyzing the cost of the two body shops their customers tend to use in hopes to save money. They randomly select 10 bills from their files of claim payments made in the last year to see if one company tends to be cheaper than the other. The data are shown below.

Crash-tastic	Mr. Fix It
1450	1300
2100	900
1190	1450
1230	820
800	4400
1420	1190
3400	7000
3720	3400
1190	2600
1050	1800

https://www.statcrunch.com/app/index.php?dataid=2698055

Part 1 of 2: 5 pts

Name the appropriate test we would use to determine if there is a significant difference in repair costs (2 pts). BE SPECIFIC! Explain why you made the choice you did (3 pts)!

Part 2 of 2: 5 pts

Check each of the four appropriate conditions in detail (1 pt each) and indicate whether you can proceed with the test. If you cannot proceed, explain why, sighting the condition that wasn't met and why.

Answer 1

we will use paired t-test to see if there is any difference in repair cost

t-Test: Paired Two Sample for Means
	Crash-tastic	Mr. Fix It
Mean	1755	2486
Variance	1023850	3867671.111
Observations	10	10
Pearson Correlation	0.531648371
Hypothesized Mean Difference	0
df	9
t Stat	-1.387516496
P(T<=t) one-tail	0.099337474
t Critical one-tail	1.833112933
P(T<=t) two-tail	0.198674949
t Critical two-tail	2.262157163