Motor Vehicle Insurance Appraisers Examine Cars That Have Been Involved

Essay

Motor vehicle insurance appraisers examine cars that have been involved in accidental collisions to assess the cost of repairs. An insurance executive is concerned that different appraisers produce significantly different assessments. In an experiment, 10 cars that had recently been involved in accidents were shown to two appraisers. Each assessed the estimated repair costs. The results are shown below. $$\begin{array} { | l | l | l | } \hline \text { Car } & \text { Appraiser 1 } & \text { Appraiser 2 } \\\hline 1 & 1650 & 1400 \\\hline 2 & 360 & 380 \\\hline 3 & 640 & 600 \\\hline 4 & 1010 & 920 \\\hline 5 & 890 & 930 \\\hline 6 & 750 & 650 \\\hline 7 & 440 & 410 \\\hline 8 & 1210 & 1080 \\\hline 9 & 520 & 480 \\\hline 10 & 690 & 770 \\\hline\end{array}$$ Can the executive conclude at the 5% significance level that the appraisers differ in their assessments?