Question

Specialty Auto Insurance wishes to compare the repair costs of moderatly damaged cars at two repair shops. To do this they sent seven cars to both repair shops to get the repair costs. The data is shown below. At the 0.01 significance level, can we conclude if there is a difference in the average repair costs for the two repair shops? Show your hypotheses. Explain your findings in a text box to the right

Car	Repair Shop 1	Repair Shop 2
1	$7,100	$7,900
2	$9,000	$10,100
3	$11,000	$12,200
4	$8,900	$8,800
5	$9,900	$10,400
6	$9,100	$9,800
7	$10,300	$11,700

Answer 1

since test statistic falls in rejection region we reject null hypothesis

we have sufficient evidence to conclude that there is a difference in the average repair costs for the two repair shops