Motorcycle Repair Cost
Motorcycle Insurance Appraisers Examine Motorcycles That Have

question 149

Essay

Motorcycle Repair Cost
Motorcycle insurance appraisers examine motorcycles that have been involved in accidental collisions and estimate the cost of repairs.An insurance executive claims that there are significant differences in the estimates from different appraisers.To support his claim he takes a random sample of six motorcycles that have recently been damaged in accidents.Three appraisers then estimate the repair costs of all six motorcycles.The data are shown below.
$$\begin{array}{l}\text { Bstimatad Repair Cost }\\\begin{array} { | c | c c c | } \hline \text { Motorcycles } & \text { Appraiser 1 } & \text { Appraiser 2 } & \text { Appraiser 3 } \\\hline 1 & 650 & 600 & 750 \\2 & 930 & 910 & 1010 \\3 & 440 & 450 & 500 \\4 & 750 & 710 & 810 \\5 & 1190 & 1050 & 1250 \\6 & 1560 & 1270 & 1450 \\\hline\end{array}\end{array}$$
-{Motorcycle Repair Cost Narrative} Set up the ANOVA Table.Use $\alpha$ = 0.05 to determine the critical values.

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Definitions:

Adjusted Gross Income

An individual's total gross income minus specific deductions, crucial for determining taxable income and eligibility for certain tax benefits.

AGI

Adjusted Gross Income, calculated as gross income minus certain adjustments, serving as the basis for various tax calculations.

Self-Employment Tax

A financial charge on self-employed persons to fund their Social Security and Medicare benefits.

Net Earnings

The amount of income generated after deducting the costs, expenses, and taxes from total revenue. It represents the actual profit of a business.