An automobile insurance company claims that its rates for teenage drivers average $410 less per year than the same coverage from another company.
In a random sample of 35 customers, the average savings was $390 per year, with a standard deviation of $55 per year. What is the z-value rounded to the nearest hundredth? Is there enough evidence to reject the claim?

Z-value is -2.15.

Yes, It is enough evidence to Reject the claim.

Step-by-step explanation:

Given that,

Rate for teenage drivers average $410 less per year than the same coverage from another company. total number of customers are 35 and their average saving $390 per year. its standard deviation is $55.

To find :- What is the z-value rounded to the nearest hundredth ? is there enough evidence to reject the claim ?

so,  

               Z- value =

Here,    ,    ,    ,  

calculating the Z-value,

                Z-value =

                             =  

                             =

Now, for rejecting the claim we need to find the P- value

(a) p value is used in hypothesis testing to find the support or reject of null hypothesis.

(b) the smaller p - value gives a strong evidence that you can reject the null hypothesis.

              P value =

Here we get that the P value is smaller than .    ()

Hence,

Yes, It is enough evidence to Reject the claim.

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step-by-step explanation: