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Hypothesis Testing

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 amount deductible and limits of liability, are standardized. The sample information is reported below.

Family Progressive GEICO Mutual Insurance
Becker 2090 1610
Berry 1683 1247
Cobb 1402 2327
Debuck 1830 1367
DuBrul 930 1461
Eckroate 697 1789
German 1741 1621
Glasson 1129 1914
King 1018 1956
Kucic 1881 1772
Meredith 1571 1375
Obeid 874 1527
Price 1579 1767
Phillips 1577 1636
Tresize 860 1188

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$2.19