The mean annual premium for automobile insurance in the United States is $1503 (Insure.com website, March 6, 2014). 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 $1440 with a standard deviation of s = $165. 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? c. At α = .05, test for a significant difference. What is your conclusion?
STATISTICS F/BUSINESS+ECONOMICS-TE...
STATISTICS F/BUSINESS+ECONOMICS-TE...
The mean annual premium for automobile insurance in the United States is $1503 (Insure.com website, March 6, 2014). 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 $1440 with a standard deviation of s = $165.
- 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?
- c. At α = .05, test for a significant difference. What is your conclusion?
Expert Solution
Chapter 9 Solutions
Additional Math Textbook Solutions
Principles of Microeconomics (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Probability and Statistics for Engineering and the Sciences
Brief Principles of Macroeconomics (MindTap Course List)
Principles of Economics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Financial & Managerial Accounting
Essentials of Business Communication (MindTap Course List)
Foundations of Business (MindTap Course List)
Corporate Financial Accounting
Cornerstones of Financial Accounting
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Accounting Information Systems
Financial Accounting
Management, Loose-Leaf Version
College Accounting, Chapters 1-27
Financial And Managerial Accounting
Essentials of Economics (MindTap Course List)
MKTG 12:STUDENT ED.-TEXT
Contemporary Marketing
Financial Accounting
Intermediate Accounting: Reporting And Analysis
Financial & Managerial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
College Accounting (Book Only): A Career Approach
Accounting Information Systems
Principles of Macroeconomics (MindTap Course List)
Exploring Economics
Statistics for Business & Economics, Revised (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Accounting (Text Only)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting (Book Only): A Career Approach
Economics (MindTap Course List)
Macroeconomics
Microeconomics
Economics For Today
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Corporate Financial Accounting
Cornerstones of Cost Management (Cornerstones Series)
Practical Management Science
Purchasing and Supply Chain Management
Survey of Accounting (Accounting I)
Statistics for The Behavioral Sciences (MindTap Course List)
Essentials Of Statistics For Business & Economics
Understanding Basic Statistics
Essentials Of Statistics
Introduction To Statistics And Data Analysis
Research Methods for the Behavioral Sciences (MindTap Course List)
Essentials of Statistics for The Behavioral Sciences (MindTap Course List)
Research Methods for the Behavioral Sciences (MindTap Course List)
Single Variable Calculus
Contemporary Mathematics for Business & Consumers
Calculus: Early Transcendental Functions
Calculus: Early Transcendental Functions (MindTap Course List)
Study Guide for Stewart's Multivariable Calculus, 8th
Finite Mathematics for the Managerial, Life, and Social Sciences
Mathematical Excursions (MindTap Course List)
Trigonometry (MindTap Course List)
Single Variable Calculus: Early Transcendentals, Volume I
Mathematical Applications for the Management, Life, and Social Sciences
Calculus of a Single Variable
Applied Calculus
Mathematics For Machine Technology
Intermediate Algebra
Calculus: An Applied Approach (MindTap Course List)
Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th
Single Variable Calculus: Early Transcendentals
Mathematics: A Practical Odyssey
Finite Mathematics
Elementary Geometry for College Students
Calculus (MindTap Course List)
College Algebra (MindTap Course List)
Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach
Discrete Mathematics With Applications
Elementary Geometry For College Students, 7e
Calculus: Early Transcendentals
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
Multivariable Calculus
Elements Of Modern Algebra
Multivariable Calculus
Elementary Technical Mathematics
Calculus (MindTap Course List)
Finite Mathematics and Applied Calculus (MindTap Course List)
Precalculus: Mathematics for Calculus (Standalone Book)
Introductory Statistics
Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
A First Course in Differential Equations with Modeling Applications (MindTap Course List)
