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FOR NEXT 4 QUESTIONS USE THE FOLLOWING DIRECTION: Parents of teenage boys often complain that auto insurance costs more, on average, for teenage boys than for teenage girls. A group of concerned parents examines a random sample of insurance bills. The mean annual cost for 58 teenage boys was $680, and it was $560 for 58 teenage girls. From past years, it is known that the population standard deviation for each group is $180. Determine whether or not you believe that the mean cost of auto insurance for teenage boys is greater than that for teenage girls (H0 is null hypothesis, and Ha is alternative hypothesis). If you conduct hypothesis testing, you have to consider:

Respuesta :

1) one- tailed test.

2) E. H_0 : μb =μg and H_a : μb > μg

3) Level of significance = 2%

4) Reject H_0 auto insurance costs for teenage boys more, on average, than for teenage girls.

Explanation:

1)

We have to test whether the mean cost of auto insurance for teenage boys is greater than that for teenage girls.

so, if you conduct hypothesis testing, you have to consider one- tailed test.

2)

E. H_0 : μb =μg and H_a : μb > μg

3)

Level of significance (α) you choose for this test is 2%

Level of significance = 2%

4)

Given, p - value = 0.007 and α= 0.058

Here p- value (0.007) is greater than given level of significance (0.05), so we reject our null hypothesis, H_0

Reject H_0 auto insurance costs for teenage boys more, on average, than for teenage girls.

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