Question: Use the variable Annual.miles.drive to construct the confidence intervals for the estimate of the population mean (i.e., mean of annual miles driven), by

  1. Use the variable "Annual.miles.drive" to construct the confidence intervals for the estimate of the population mean (i.e., mean of annual miles driven), by gender, i.e. by male and female drivers, at 94% levels. Interpret your confidence intervals.

Data for female
Sample Mean 9343.696329
Sample Standard Deviation 3903.358099
Sample Size 274
Confidence Level 94%

Confidence Interval for Female
Interval Lower Limit 8900.2
Internal Upper Limit 9787.2

The interpretation of these two tables above is that we are 94% confident that the population mean miles driven by females is between 8900.2 and 9787.2 miles.

Data for Male
Sample Mean 9301.885749
Sample Standard Deviation 4170.560769
Sample Size 326
Confidence Level 94%

Confidence Interval for Male
Interval Lower Limit 8867.4
Internal Upper Limit 9736.3

The interpretation of these two tables above is that we are 94% confident that the population mean miles driven by males is between 8867.2 and 9763.3 miles.

  1. Did you make any assumptions when constructing your confidence intervals? If yes, which assumptions; if not, why?

  1. If insurance companies charge premiums based on the annual miles driven, based on your finding, is it warranted for insurance companies to charge male drivers higher premiums based on this data set? Explain

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