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Mathematics Clinic => Statistics => Topic started by: bclement10 on Apr 14, 2020

Title: An insurance company's procedure for settling a claim under $10,000 for fire or water damage to a ...
Post by: bclement10 on Apr 14, 2020

An insurance company's procedure for settling a claim under $10,000 for fire or water damage to a home is to require two estimates for cleanup and repair of structural damage before allowing the insured to proceed with the work. The insurance company compared the estimates from two contractors on 38 jobs in the region. The insurance company is interested in knowing if the contractors typically produce different estimates for the projects. Assume that all conditions for testing have been met.


Choose the correct null and alternative hypotheses.
◦ H₀: The median difference in estimated cost is 0
H_a : The median difference in estimated cost is not 0
◦ H₀: The median difference in estimated cost is 500
H_a : The median difference in estimated cost is not 500
◦ H₀: The median difference in estimated cost is not 500
H_a : The median difference in estimated cost is 500
◦ H₀: The median difference in estimated cost is not 0
H_a : The median difference in estimated cost is 0

Title: An insurance company's procedure for settling a claim under $10,000 for fire or water damage to a ...
Post by: blazinlyss on Apr 14, 2020

H₀: The median difference in estimated cost is 0
H_a : The median difference in estimated cost is not 0

Title: Re: An insurance company's procedure for settling a claim under $10,000 for fire or water damage to
Post by: Isabella West on Dec 21, 2020

Thank you

Title: Re: An insurance company's procedure for settling a claim under $10,000 for fire or water damage to
Post by: t3r4h byt3 on Mar 19, 2022

Thank you