4) An auto insurance claim adjustor wanted to determine if the repair cost for b
ID: 3201596 • Letter: 4
Question
4) An auto insurance claim adjustor wanted to determine if the repair cost for bumper damage was different for different model automobiles.
a) State the Hypothesis to show repair cost for bumper damage depends on the vehicle model.
b) Choose a level of Use = 0.05 for this problem.
c) To test the hypothesis, the claim adjustor conducted a bumper test. In the test, three types of autos were deliberately crashed into a barrier at 5 mph, the vehicles were repaired and the cost (in dollars) was recorded. Five test vehicles of each type were crashed and the data appears in the Crash worksheet in the HW4 data workbook on Moodle. Test the hypothesis using Excel.
d) Draw a conclusion and report that in the context of the problem.
e) Assume that vehicle type is a random factor, i.e., the three vehicles used in the test represent a random sample of all possible vehicles. Estimate the components of variance in bumper repair cost.
Goliath Varmint Weasel 1600 1290 1090 760 1400 2100 880 1390 1830 1950 1850 1250 1220 950 1920Explanation / Answer
a) Hypothesis formation:
H0: The bumper repair cost for all 3 vehicles are same
Ha: The bumper repair cost for at least 1 pair of vehicles are different
b) we will find out observed significant level and compare it with the fixed significant level. we will use F-test in ANOVA.
c) using Excel data analysis add in we get:
d) Since p-value>0.05, we cant reject H0
conclusion: No significant differences in repair cost.
e) Variances are:
Anova: Single Factor SUMMARY Groups Count Sum Average Variance Goliath 5 6410 1282 246320 Varmint 5 6880 1376 103580 Weasel 5 8190 1638 195170 ANOVA Source of Variation SS df MS F P-value F crit Between Groups 340360 2 170180 0.93665 0.418802 3.885294 Within Groups 2180280 12 181690 Total 2520640 14Related Questions
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