Determine if the average annual price of car insurance for adults ages 18-25 will be the same in each state.

You are moving from New York to Massachusetts and trying to determine if the average annual price of car insurance for adults ages 18-25 will be the same in each state.  You collect a random sample of New York residents and Massachusetts residents between the ages of 18-25 and obtain the following statistics:

For questions 3, complete the following steps for the given scenario:

• Identify the observational units and sample sizes.

• Identify the variables and classify them as categorical or quantitative.

• Identify the statistics of interest.  What symbols should be used to represent them?

• Describe the parameters of interest.  What symbols should be used to represent them?

• Determine the null hypothesis and the alternative hypotheses.  Write the hypotheses in both words and symbols.  Remember: When comparing two means, our null hypothesis is always the assumption that the two means are equal.  That is, the difference between them is equal to zero.

• Use either the Comparing Groups (Two Means) applet or the Theory-Based Inference applet perform a statistical analysis.  Determine the values and symbols that should be entered in the applet to create a distribution of simulated sample statistics.  Generate the distribution of simulated sample statistics and use the applet to calculate the p-value and the standardized statistic.  Include a screenshot of the applet, distribution, and p-value found.

• Fill in the blanks for the statement interpreting the p-value. 

 If the average price of car insurance is the same in New York and Massachusetts for 18 to 25-year-olds, the probability of obtaining a difference in sample statistics at least as extreme as ______ is _______%.

• In complete sentences, write a conclusion to the research question.