Assignment 4
** PLEASE NOTE: You don’t need to record a video for this assignment**
1. Automobile Insurance Premiums. The average annual premium for automobile insurance in the United States is $1,503. The following annual premiums ($) are representative of the web site’s findings for the state of Michigan.
1, XXXXXXXXXX, XXXXXXXXXX,312
2, XXXXXXXXXX, XXXXXXXXXX,981
2, XXXXXXXXXX, XXXXXXXXXX,627
2, XXXXXXXXXX, XXXXXXXXXX,857
2, XXXXXXXXXX, XXXXXXXXXX,675
2, XXXXXXXXXX, XXXXXXXXXX,115
XXXXXXXXXX2, XXXXXXXXXX,442
Assume the population is approximately normal.
a. Provide a point estimate of the mean annual automobile insurance premium in Michigan.
. Develop a 95% confidence interval for the mean annual automobile insurance premium in Michigan.
c. Does the 95% confidence interval for the annual automobile insurance premium in Michigan include the national average for the United States? What is your interpretation of the relationship between auto insurance premiums in Michigan and the national average?
2. Used Car Prices. According to the National Automobile Dealers Association, the mean price for used cars is $10,192. A manager of a Kansas City used car dealership reviewed a sample of 50 recent used car sales at the dealership in an attempt to determine whether the population mean price for used cars at this particular dealership differed from the national mean. The prices for the sample of 50 cars are shown in the file UsedCars.
a. Formulate the hypotheses that can be used to determine whether a difference exists in the mean price for used cars at the dealership.
. What is the p value?
c. At α=0.05, what is your conclusion?
Data
Annual Premium
1905
2725
2677
2600
2962
2184
2332
3112
2545
2525
2370
2545
2529
2442
2312
2981
2627
2857
2675
2115
Data
Sale Price
12400
10400
12100
10000
11000
8895
7675
9975
6350
10470
9895
11250
8795
12500
9340
10150
9200
9395
11000
10640
10000
7500
8000
10440
10200
10300
9740
9280
10930
8000
9000
7680
9400
10730
7350
12240
11970
8240
9910
10080
9440
8970
9500
10050
10130
11400
8500
7500
9090
10500