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.
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H0: The median difference in estimated cost is 0
Ha : The median difference in estimated cost is not 0
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H0: The median difference in estimated cost is 500
Ha : The median difference in estimated cost is not 500
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H0: The median difference in estimated cost is not 500
Ha : The median difference in estimated cost is 500
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H0: The median difference in estimated cost is not 0
Ha : The median difference in estimated cost is 0
Turn on water
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