# Traveler's Insurance would like to test the hypothesis

| June 20, 2016
5) Traveler’s Insurance would like to test the hypothesis that the average number of miles driven
per month by a male teenage driver exceeds the average number of miles driven per month by a
female teenage driver by more than 50 miles. The following data summarizes the sample
statistics for the miles driven per month by each gender. Assume that the population variances
are equal.
Male

Female

Sample mean

685

580

Sample size

13

16

Sample standard deviation

130

120

Define Population 1 as male drivers and Population 2 as female drivers and use the critical value
approach to test this hypothesis with ? = 0.05.
6) American Greetings would like to test the hypothesis that the average amount of money spent
per person on Mother’s Day increased by more than \$10 this year when compared to last year.
The following data represents the amount of money that the same eight individuals spent on
Mother’s Day during the past two holidays.
Person

1

2

3

4

5

6

7

8

Last
Year

\$140

\$113

\$86

\$147

\$140

\$162

\$150

\$142

This
Year

\$133

\$110

\$156

\$170

\$160

\$166

\$183

\$154

Define Population 1 as this year and Population 2 as last year and use the p-value approach to
test this hypothesis with ? = 0.05.

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