Discuss the below:
Q1. 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 amount deductible 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?
|
Family
|
American
Car Insurance
|
St Paul
Mutual Insurance
|
|
Becker
|
$2,090
|
51,610
|
|
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
|
Q2. Research at the University of Toledo indicates that 50 percent of the students change their major area of study after their first year in a program. A random sample of 100 students in the College of Business revealed that 48 had changed their major area of study after their first year of the program. Has there been a significant decrease in the proportion of students who change their major after the first year in this program? Test at the .05 level of significance.