Question: c) Using thisinformation, discuss the assumptions and conditions for inference with these data. First discuss the Paired Data Condition. After seeing countless commercials claiming one

c) Using thisinformation, discuss the assumptions and conditions for inference with these data. First discuss the Paired Data Condition.

data. First discuss the Paired Data Condition. After seeing countless commercials claiming

After seeing countless commercials claiming one can get cheaper car insurance from an online company, an insurance agent was concerned he might lose some customers. To investigate, he randomly selected proles for 10 of his clients and compared their local policies to online quotes. Summary statistics are given in the accompanying table for 10 drivers' car insurance premiums quoted by a local agent and an online company. The displays for each company's quotes and for the difference (PriceDiff= Local - Online) are given in the accompanying tables. Complete parts a through c below. Click the icon to view the summary statistics. IL, Click the icon to view a boxplot and histogram for the data. 3' D. The histogram would help because the histogram is based off PriceDiff. b) The standard deviation for PriceDiff is quite a bit smaller than the standard deviation of prices quoted by either the local or online companies. Discuss why. xx A. Since the range for the local and online companies are relatively similar, the standard deviation of their differences will be smaller. B. Since PriceDiff contains negative values, this causes the standard deviation to be smaller. * C. Insurance cost is based on risk, so drivers are likely to see similar quotes from each company, making the differences relatively smaller. D. Online companies base their quotes on local insurance companies, so the differences between the two quotes are similar values, resulting in a relatively smaller standard deviation for the differences. c) Using this information, discuss the assumptions and conditions for inference with these data. First discuss the Paired Data Condition. 0 A. Since all three data sets have equal counts, this condition is met. 0 B. Since the two data sets are from the same population, this condition is met. 0 C. The price quotes are given as paired (local/online) so this condition is met. 0 D. It is not stated whether the data are paired, so this condition is not met. \f\f

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