# Hypothesis Testing: Independent Sample t Test

See the attached file for the data.

Insurance adjusters are concerned about the high estimates they are receiving from Jocko's Garage. To see if the estimates are unreasonably high, each of 10 damaged cars was taken to Jocko's and to another garage and the estimates recorded. Here are the results:

Test the null hypothesis that there is no difference between the two garages. Be sure to specify the null and alternative hypotheses, the test statistic with degrees of freedom, and the P-value. What do you conclude?

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#### Solution Preview

Please see the attachments.

Workings are given in the excel sheet.

Insurance adjusters are concerned about he high estimates they are receiving from Jocko's Garage. To see if the estimates are unreasonably high, each of 10 damaged cars was taken to Jocko's and to another garage and the estimates recorded. Here are the results:

Car 1 2 3 4 5

Jocko's

Other 500

400 1550

1500 1250

1300 1300

1300 750

800

Car 6 7 8 9 10

Jocko's

Other 1000

800 1250

1000 1300

1100 800

650 2500

2200

Test the null hypothesis that there is no ...

#### Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.