Answer:
No there is not enough evidence to support the claim that the mean expenditure for auto insurance is less than the 2002 amount at the α = 0.05 level of significance
Step-by-step explanation:
Sample Mean = μ1 = $806
Sample Mean = μ2 = $ 781
Standard Deviation= S= σ =39.13
n= 32
Confidence Interval = 95 %
α= 0.05
z∝=± 1.96
We state the null and alternative hypotheses as
H0: μ1 = $806 and Ha: μ1 ≠ $806 two sided tail test
z= μ1 -μ2/σ/√n
z= 806-781/ 39.13/√32
z= 806-781/ 39.13/5.6568
z=806-781/ 6.92
z= 25/6.92
z= 3.613
Z> z∝
3.613 > ± 1.96
No there is not enough evidence to support the claim that the mean expenditure for auto insurance is less than the 2002 amount at the α = 0.05 level of significance