In 2010, the Mean Expenditure for Auto Insurance in a Certain

question 58

Essay

In 2010, the mean expenditure for auto insurance in a certain state was $806. An insurance salesperson in thisstate believes that the mean expenditure for auto insurance is less today. She obtains a simple random sampleof 32 auto insurance policies and determines the mean expenditure to be $781 with a standard deviation of$39.13. Is there enough evidence to support the claim that the mean expenditure for auto insurance is less thanthe 2010 amount at the α = 0.05 level of significance?

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Definitions:

Collagen and Elastin Fibers

Proteins present in connective tissues, where collagen provides strength and elastin allows for elasticity.

Macrophages

A variant of white blood cell that is specialized in ingesting and decomposing cellular remnants, alien substances, pathogens, and cancerous cells by means of a procedure referred to as phagocytosis.

Arrector Pili

Small muscles attached to hair follicles that, when contracted, cause hair to stand on end - a phenomenon often associated with cold or fright, known as "goosebumps."

Dermal Root Sheath

The part of the hair follicle that provides a protective layer and is involved in hair growth, derived from the dermis.