Assignment 4 ** PLEASE NOTE: You don’t need to record a video for this assignment** 1. Automobile Insurance Premiums. The average annual premium for automobile insurance in the United States is...

Everything in files


Assignment 4 ** PLEASE NOTE: You don’t need to record a video for this assignment** 1. Automobile Insurance Premiums. The average annual premium for automobile insurance in the United States is $1,503. The following annual premiums ($) are representative of the web site’s findings for the state of Michigan. 1,905 3,112 2,312 2,725 2,545 2,981 2,677 2,525 2,627 2,600 2,370 2,857 2,962 2,545 2,675 2,184 2,529 2,115 2,332 2,442 Assume the population is approximately normal. a. Provide a point estimate of the mean annual automobile insurance premium in Michigan. b. Develop a 95% confidence interval for the mean annual automobile insurance premium in Michigan. c. Does the 95% confidence interval for the annual automobile insurance premium in Michigan include the national average for the United States? What is your interpretation of the relationship between auto insurance premiums in Michigan and the national average? 2. Used Car Prices. According to the National Automobile Dealers Association, the mean price for used cars is $10,192. A manager of a Kansas City used car dealership reviewed a sample of 50 recent used car sales at the dealership in an attempt to determine whether the population mean price for used cars at this particular dealership differed from the national mean. The prices for the sample of 50 cars are shown in the file UsedCars. a. Formulate the hypotheses that can be used to determine whether a difference exists in the mean price for used cars at the dealership. b. What is the p value? c. At α=0.05, what is your conclusion? Data Annual Premium 1905 2725 2677 2600 2962 2184 2332 3112 2545 2525 2370 2545 2529 2442 2312 2981 2627 2857 2675 2115 Data Sale Price 12400 10400 12100 10000 11000 8895 7675 9975 6350 10470 9895 11250 8795 12500 9340 10150 9200 9395 11000 10640 10000 7500 8000 10440 10200 10300 9740 9280 10930 8000 9000 7680 9400 10730 7350 12240 11970 8240 9910 10080 9440 8970 9500 10050 10130 11400 8500 7500 9090 10500