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    Comparing Competitors' Annual Auto Insurance Prices

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    52.
    The president of the American Insurance Institute wants to compare the yearly costs of auto insurance offered by two leading companies. He selects a sample of 15 families, some with only a single insured driver, others with several teenage drivers, and pays each family a stipend to contact the two companies and ask for a price quote. To make the data comparable, certain features, such as the deductible amount and limits of liability, are standardized. The sample information is reported below. At the .10 significance level, can we conclude that there is a difference in the amounts quoted?

    Family Progressive Car Insurance GEICO Mutual Insurance
    Becker $2,090 $1,610
    Berry 1,683 1,247
    Cobb 1,402 2,327
    Debuck 1,830 1,367
    DuBrul 930 1,461
    Eckroate 697 1,789
    German 1,741 1,621
    Glasson 1,129 1,914
    King 1,018 1,956
    Kucic 1,881 1,772
    Meredith 1,571 1,375
    Obeid 874 1,527
    Price 1,579 1,767
    Phillips 1,577 1,636
    Tresize 860 1,188

    23.
    A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the oceanfront with those one to three blocks from the ocean. A sample of 21 oceanfront homes sold within the last year revealed the standard deviation of the selling prices was $45,600. A sample of 18 homes, also sold within the last year, that were one to three blocks from the ocean revealed that the standard deviation was $21,330. At the .01 significance level, can we conclude that there is more variation in the selling prices of the oceanfront homes?

    28.
    The following is a partial ANOVA table.

    Source Sum of Squares df Mean Square F
    Treatment 2
    Error 20
    Total 500 11

    Complete the table and answer the following questions. Use the .05 significance level.
    1. How many treatments are there?
    2. What is the total sample size?
    3. What is the critical value of F?
    4. Write out the null and alternate hypotheses.
    5. What is your conclusion regarding the null hypothesis?

    19.
    In a particular market there are three commercial television stations, each with its own evening news program from 6:00 to 6:30 P.M. According to a report in this morning's local newspaper, a random sample of 150 viewers last night revealed 53 watched the news on WNAE (channel 5), 64 watched on WRRN (channel 11), and 33 on WSPD (channel 13). At the .05 significance level, is there a difference in the proportion of viewers watching the three channels?

    Gift Frequency
    Sweatshirt 183
    Coffee cup 175
    Earrings 142

    20.
    There are four entrances to the Government Center Building in downtown Philadelphia. The building maintenance supervisor would like to know if the entrances are equally utilized. To investigate, 400 people were observed entering the building. The number using each entrance is reported below. At the .01 significance level, is there a difference in the use of the four entrances?

    Entrance Frequency
    Main Street 140
    Broad Street 120
    Cherry Street 90
    Walnut Street 50
    Total 400

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    https://brainmass.com/statistics/hypothesis-testing/comparing-competitors-annual-auto-insurance-prices-253265

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    Solution Summary

    The solution examines a partial ANOVA table analysis. Variance in selling prices for oceanfront homes are analyzed.

    $2.19

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