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Simora [160]
3 years ago
6

Insurance adjusters are concerned about the high estimates they are receiving from Jocko’s Garage. To see if the estimates are u

nreasonably high, each of 10 damaged cars was taken to Jocko’s and to a trusted garage and the estimates recorded. Here are the results:
Jocko's: 500,1550,1250,1300,750,1000,1210,1300,800,2500


Other: 430,1500,1300,1280,780,870,1120,1140,650,2290


Use the test of hypothesis procedure to investigate the allegation that Jocko’s Garage over-charges for the car repairs. State the null and alternative hypotheses (H0 and Ha) in a sentence and also using proper Greek symbol(s) for the parameter(s). Show the test statistic calculations with degrees of freedom, and the P-value etc. Use significance level value of 5%. State your conclusion in simple language.
Mathematics
1 answer:
aleksley [76]3 years ago
8 0

Answer:

The null hypotesis is not rejected, so, there is not evidence that jocko's garage over - charges for the car repairs.

Step-by-step explanation:

H0 μ=0

Ha μ>0

Jocko Other Difference

500 430 70

1550 1500 50

1250 1300 -50

1300 1280 20

750 780 -30

1000 870 130

1210 1120 90

1300 1140 160

800 650 150

2500 2290 210

d bar =80

sd = 84.59

t=(d bar - μ)/sd = 0.9457

p-value=P(t_{9} > 0.9457)= 0.1845 > 5%

The null hypotesis is not rejected, so, there is not evidence that jocko's garage over - charges for the car repairs.

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