Does where you live affect your insurance rate? The mean auto insurance rate for 25 drivers in a large city is $1,834 per car with a standard deviation of $384 while the mean rate for 27 drivers in a rural area is $1,664 with a standard deviation of $278. At = 0.05, 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?

T-Distribution Table

a. Calculate the test statistic.

t=

Round to three decimal places if necessary

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

• +

Round to three decimal places if necessary

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

Reject

Fail to Reject