Motorcycle Insurance Appraisers Examine Motorcycles That Have Been Involved in Accidental

question 43

Essay

Motorcycle insurance appraisers examine motorcycles that have been involved in accidental collisions to assess the cost of repairs. An insurance executive is concerned that different appraisers produce significantly different assessments. In an experiment 10 motorcycles that have recently been involved in accidents were shown to two appraisers. Each assessed the estimated repair costs. These results are shown below. Can the executive conclude at the 5% significance level that the appraisers differ in their assessments?

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Definitions:

Cheques

A method of payment that allows an individual to instruct their bank to pay a specific amount from their account to another party.

Daily Interest Rate

This is the interest rate applied to a loan or investment for a single day, often used in calculating accrued interest over a period.

Collection Float

The time difference between when a check is deposited and when the funds are available in the account, affecting the business’s cash flow.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a designated entity.