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:

Voting Power

The right or authority to vote, often related to the number of votes someone controls in the decision-making process of an organization.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Strike Suit

In corporation law, a derivative suit motivated primarily by an intent to gain an out-of-court settlement for the suing shareholder personally or to earn large attorney’s fees for lawyers, rather than to obtain a recovery for the corporation.

Derivative Action

A lawsuit brought by a company shareholder on behalf of the corporation against a third party, often insider directors or managers, alleging harm to the company.