Discuss this issue based on a hypothesis test

Assignment Help Mathematics

Reference no: EM132738025

Hypothesis Testing-Regression (Partly from Keller and Warrack, 5th Ed.)

When setting up their rates policy, Automobile Insurance companies usually take in consideration several factors like age, marital status, vehicle type, profession, and distance driven yearly. To this end one of these companies conducted a survey on a sample of 200 people (100 male and 100 female) to investigate the effect of gender on driving habits. The number of miles driven by each person last year was recorded, as well as the distances of their homes to the Capital. The resulting dataset is stored in the third sheet "Data" of this Group Work Excel file (MTH203-STA201_Group Work-Fall 2020.xlsx). The variables used are defined as follows:

Column 1: Miles Driven (in miles).
Column 2: Distance to Capital (in miles).
Column 3: Gender Code (1 = male, 2 = female).

"a. Use appropriate Excel Descriptive Statistics tools to summarize this data (describe "Miles Driven" and "Distance to Capital" overall and for each gender separately).

b. The company believes that on the average, most people drive more than 10,000 miles per year. On the basis of the entire sample, discuss this issue based on a hypothesis test for the population mean number of miles driven per year at the 5% level of significance.

c. On the other hand, the company believes that on the average, the yearly number of miles driven by males is more than that for females. Repeat the test of hypothesis of part (b.), but for each gender separately. Based on the outcomes of these two tests approve or disapprove the company's belief.

d. Use a test of hypothesis to check whether there is a significant linear relationship between "Miles Driven" and "Distance to Capital" at the 5% then the 1% level of significance. Based on the value of R-Squared (Coefficient of Determination), is the regression of "Miles Driven" on "Distance to Capital" a good model? Explain."

Attachment:- Hypothesis Testing-Regression.rar

Reference no: EM132738025

Questions Cloud

How much cash will increase during the month of march : Adelphi Company has budgeted activity for March to reflect net income $115,000. All sales are credit sales. Receivables are planned to increase (decrease -).

Advantages and disadvantages of working in teams : Explain the advantages and disadvantages of working in teams. Also, describe how to determine training needs and how to select the appropriate training methodol

Discuss whether fast finance are likely to be successful : ABC Books sells discounted book, Discuss whether Fast Finance are likely to successful in trying to recover the balance of the loss from Auditors for Results.

Certain level of conflict to dominate : In a team environment, is it a better approach to avoid conflicts to make a harmony in group and speed up decision making or is it better to disagree and have a

Discuss this issue based on a hypothesis test : Discuss this issue based on a hypothesis test for the population mean number of miles driven per year at the 5% level of significance.

Enhancing online shopping experience : You are a CEO of a clothing retailer and recently your store is also severely affected by the COVID-19 pandemic. Store traffic has significantly

How do prepare the necessary adjusting entries as of march : During the quarter, SRS collected in advance Php 50,000 from client. Prepare the necessary adjusting entries as of March 31, 2020.

Identify the actions that authentic leaders take : Identify the actions that authentic leaders take (per George et al., 2011, p.165) to become and remain an authentic leader and briefly explain each one.

Identify the four interrelated ideas : Identify the four interrelated ideas and briefly explain each one.

User Account

All Pages