Question

In: Statistics and Probability

An insurance company checks police records of 500 accidents and finds that teenagers were at the...

An insurance company checks police records of 500 accidents and finds that teenagers were at the wheels in 87 accidents.
Assume that the true population proportion of accidents with teen-agers at the wheels is : p = 0.20.  
Estimate the probability that the sample proportion of teen age drivers in this population is no more than the observed proportion of auto accidents that involve teenagers.
Use the simulated data on phat ( "phat.rda") from 5000 simulations under the null hypothesis:

Answer to 4 decimal places

Solutions

Expert Solution

Observed Hypothesized
0.174 0.2 p (as decimal)
87/500 100/500 p (as fraction)
87. 100. X
500 500 n
0.0179 std. error
-1.45 z
.9269 p-value (one-tailed, upper)

The probability that the sample proportion of teen age drivers in this population is no more than the observed proportion of auto accidents that involve teenagers is 0.9269.


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