An Insurance Company Evaluates Many Numerical Variables About a Person

question 133

Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance. The distance a person drives in a year is an example of a(n)_______ variable.

---

Definitions:

One-way ANOVA

A statistical test that assesses whether there are statistically significant differences between the means of three or more unrelated groups.

T-test

A statistical test used to compare the means of two groups or to compare a sample mean to a known value, assessing whether differences are statistically significant.

F-test

A statistical test used to determine if there are significant differences between the variances of two or more groups.

Rejection Region

Rejection region is the range of values in hypothesis testing that leads to the rejection of the null hypothesis if the test statistic falls within this range.