Chapter 12, Problem AP4.10CPT

To determine

To find out which of the following significance tests should be used to determine whether the adjusters’ suspicion is correct.

Answer to Problem AP4.10CPT

Option (a) is the correct option.

Explanation of Solution

We are assuming that the conditions are met. The estimates are given in the table in the question. We note that we have two data values for each car: The estimate by repair shop $1$ and the estimate by repair shop $2$ . This, then implies that the samples are dependent and that the data is paired as the data comes in pairs, where each pair is the two estimates for the same car. Since the data is paired, it would then be best to use a paired t test. Thus, option (a) is the correct option.