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The data that you will be using for this exercise came from a survey of two insurance carriers.
The first carrier (C1) was compared against the second competitor (C2). The insurance company management team wants to know how Carrier 1 compared to the second carrier. Data from 159 respondents are included.
All of the 5 questions are rated on a scale of 1 to 5, with 1 being "much worse" and 5 being "much better"
1. Graph the 5 main survey variables in a histogram. For each graph you are going to graph out the data values, grouped by responses. You should have categories that are the responses 1-5. You should have 5 histograms, and on each, display both the C1 and C2 data on the same graph. What can you see from these graphs?
2. Create 95% confidence intervals for the mean for the 5 survey variables on Carrier 1.
3. Perform 5 t-tests on the data comparing C1 to C2 on each of the 5 questions. Indicate which of the 5 variables has a difference between C1 and C2.
4. Interpret the data and write an brief (2 paragraph) executive summary to C1 management describing your findings.
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The buyer-believes that the differences are normally distributed and will use this sample to perform an appropriate test at a level of significance of 0.01.
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What would that evaluation be and what is the margin of error?
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