Does where you live affect your insurance rate? The mean auto insurance rate for 22 drivers in a large city is $1,835 per car with a standard deviation of $312 while the mean rate for 30 drivers in a rural area is $1,661 with a standard deviation of $239. At = 0.025, can we conclude that drivers in the large city pay higher insurance rates than those in the rural area, assuming the population variances are equal?

a. Calculate the test statistic.

b. Determine the critical value(s) for the hypothesis test.

c. Conclude whether to reject the null hypothesis or not based on the test statistic.

Reject or Fail to Reject