Insurance Company A claims that its customers pay less for car insurance, on average than customers of its competitor, Company B. You wonder if this is true, so you decide to compare the average monthly costs of similar insurance policies from the two companies. For a random sample of 11 people who buy insurance from Company A, the mean cost is $150 per month with a standard deviation of $14. For 14 randomly selected customers of Company B, you find that they pay a mean of $158 per month with a standard deviation of $12. Assume that both populations are approximately normal and that the population variances are equal to test Company A’s claim at the 0.10 level of significance. Let customers of Company A be Population 1
Insurance Company A claims that its customers pay less for car insurance, on average than customers of its competitor, Company B. You wonder if this is true, so you decide to compare the average monthly costs of similar insurance policies from the two companies. For a random sample of 11 people who buy insurance from Company A, the mean cost is $150 per month with a standard deviation of $14. For 14 randomly selected customers of Company B, you find that they pay a mean of $158 per month with a standard deviation of $12. Assume that both populations are approximately normal and that the population variances are equal to test Company A’s claim at the 0.10 level of significance. Let customers of Company A be Population 1
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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Insurance Company A claims that its customers pay less for car insurance, on average than customers of its competitor, Company B. You wonder if this is true, so you decide to compare the average monthly costs of similar insurance policies from the two companies. For a random sample of 11 people who buy insurance from Company A, the mean cost is $150 per month with a standard deviation of $14. For 14 randomly selected customers of Company B, you find that they pay a mean of $158 per month with a standard deviation of $12. Assume that both populations are approximately normal and that the population variances are equal to test Company A’s claim at the 0.10 level of significance. Let customers of Company A be Population 1 and let customers of Company B be Population 2.
Step 2 of 3 :
Compute the value of the test statistic. Round your answer to three decimal places.
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