The insurance premiums for males and females

Reference no: EM13221842

A single 19-year-old who has just purchased his/her own 2-year-old Honda Civic, might be asking, "Why does auto insurance cost so much?". There are many reasons according to the insurance agent, one of which is whether the driver is male or female. The insurance rates listed are for a random sample of 16 zip codes within a 50- mile radius of our 19-year-old question. The date are for a policy whose features are $500 deductible, $25,000/$50,000 bodily insurance, $25,000 property, and $25,000/$50,000 uninsured/underinsured motorist.

Male ($) (1,215.30) (996.30) (1,179.30) (1,254.30) (1,110.30) (2,086.60) (856.30) (1,298.30)
Female ($) (1,015.30) (812.30) (987.30) (1,045.30) (916.30) (1,804.60) (671.30) (1,132.30)

Male ($) (760.30) (956.30) (1,304.30) (1,548.30) (1,760.30) (1,337.30) (1,037.30) (1,182.30)
Female ($) (606.30) (771.30) (1,095.30) (1,278.30) (1,444.30) (1,095.30) (812.30) (940.30)

A. At first glance, does there seem to be a pattern to the relationship between the insurance premiums for males and females? Describe it.

B. Describe each set of data graphically (males, females, and difference) using a histogram and one other graph.

C. Find the mean and the standard deviation for each set of data: males, females, difference

D. Are the assumptions for the mean of a paired difference confidence intervals satisfied? Explain

E. Using a 95% confidence interval, estimate the mean of the differences. Write a complete confidence interval statement.

F. Do your answers to the above questions suggest any evidence of a difference between the auto insurance rates for male and female 19-year-old drivers? Explain

Reference no: EM13221842

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