Suppose a Car Insurance Company Is Interested to Know the Average

question 29

Multiple Choice

Suppose a car insurance company is interested to know the average size of insurance claims for people living in secured apartment complexes, gated communities and stand-alone houses. Which of the following statistical tests would be appropriate?

• A) One-sample t-test
• B) Paired-samples t-test
• C) Independent samples t-test
• D) ANOVA

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Definitions:

Consequential Damages

Refer to indirect damages resulting from a breach of contract, not caused directly by the breach but instead by the subsequent consequences of that breach.

Liquidated Damages

A provision in a contract that specifies a predetermined amount of money that must be paid as damages in the event of a breach by one of the parties.

Nominal Damages

Nominal Damages are a small sum awarded by a court when a legal wrong has occurred, but no significant actual loss was suffered by the plaintiff.

Compensatory Damages

Payments awarded to a plaintiff to compensate for harm, loss, or injury suffered due to another's wrongful act.