Auto Insurance the Insurance Institute for Highway Safety Publishes Ratings

question 38

Essay

Auto insurance The Insurance Institute for Highway Safety publishes ratings for all
models of vehicles to compare the relative risk of payouts. 100 is the mean rating for all
vehicles. A rating of 122 means the vehicle is 22% worse than average. The table at the
right shows the summary statistics for the collision ratings of 27 midsize cars. $$\begin{array} { | l | r | } \hline \text { Min } & 57 \\\text { Q1 } & 99 \\\text { Median } & 109 \\\text { Q3 } & 122 \\\text { Max } & 173 \\\text { Mean } & 110.9 \\\text { SD } & 23.99 \\\hline\end{array}$$
a. Were any of the ratings outliers? Show how you made your decision.
b. A histogram of the data is shown. Is it more appropriate to use the mean and standard
deviation, or the median and IQR to describe these data? Explain.

---

Definitions:

Objective Performance

A method of assessment based on measurable, observable facts and outcomes, thereby reducing personal biases in evaluation.

Personal Prejudice

Biases or preconceived opinions individuals hold that can affect their judgment or interactions with others.

Halo Effect

A psychological phenomenon where an individual's overall impression of a person, brand, or product positively influences their feelings and thoughts about that entity's specific traits.

Strictness

The quality of exacting standards or stringent enforcement of rules, often applied in disciplinary contexts.