Premium Equity? The cost of auto insurance varies by coverage, location, and the dri...

Premium Equity? The cost of auto insurance varies by coverage, location, and the driving record of the driver. The following are estimates of the annual cost for standard coverage as of January 1, 2011 for a male driver with 6–8 years of experience, driving a Honda Accord with no accidents or violations.3 (These are quotes and not premiums.)

a. What type of design was used in collecting these data?

b. Is there sufficient evidence to indicate that insurance premiums for the same type of coverage differs from company to company?

c. Is there sufficient evidence to indicate that insurance premiums vary from location to location?

d. Use Tukey’s procedure to determine which insurance companies listed here differ from others in the premiums they charge for this typical client. Use α = .05.

e. Summarize your findings.