Hypothesis testing-paired t test of auto insurance

Reference no: EM13107195

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?

Progressive GEICO

Family Car Insurance 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

Reference no: EM13107195

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