As a Step in Establishing Its Rates,an Automobile Insurance Company

question 33

True/False

As a step in establishing its rates,an automobile insurance company is interested in determining whether there is a difference in the mean highway speeds that drivers of different age groups drive.To help answer this question,it has selected a random sample of drivers in three age categories: under 21,21-50,and over 50.The engineers then recorded the drivers' speeds at a designated point on a highway in the state.The subjects were unaware that their speed was being recorded.The following one-way ANOVA output was generated from the sample data.Based on this output,the engineers can conclude that the assumption of equal variances is satisfied since the calculated F-value is less than the critical F from Hartley's table at α = .05.
Anova: Single Factor
SUMMARY ANOVA

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Definitions:

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Statement Of Financial Position

A balance sheet is a financial statement that outlines a company's equity, liabilities, and assets at a certain date.

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.

Sales Discounts

Reductions in price given by a seller to a buyer, often to prompt early payment or reward customer loyalty.