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:

Hypertension

Chronically high blood pressure.

Arthritis

A group of painful and degenerative conditions marked by inflammation in the joints, leading to stiffness and pain.

Depression

A common and serious mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Chronic Health Problems

Long-term health issues that persist over an extended period of time, often requiring ongoing management and treatment.