Driver Squared
We suspect that the automobile insurance premium (in dollars) may be steadily decreasing with the driver's dri?
We suspect that the automobile insurance premium (in dollars) may be steadily decreasing with the driver's driving experience (in years), so we choose a random sample of drivers who have similar automobile insurance coverage.
(a) matched pairs t-test
(b) two-sample t-test
(c) ANOVA
(d) chi-squared test for independence
(e) inference for regression
It appears that you want to make an inference from regression.
y=premium, and x=age
"steadily decreasing" may imply a linear decrease.
Set up a regression, y = beta0+ beta*x + e
where e is the random error, beta0 is constant, and beta is the slope of the relation.
You will like to find beta<0. Finally, you need to test whether beta is significantly different from 0 (a test usually included in any computer package).
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