Question

A large automobile insurance company selected samples of single and married male policyholders and recorded the number who made an insurance claim over the preceding three year period.

Single Policyholders	Married Policyholders
n1= 587	n2=972
Number making claims=90	Number making claims=103

a. Use ALPHA = 0.05. Test to determine whether the claim rates differ between single and married male policyholders.

-value	(to 2 decimals)
-value	(to 4 decimals)

b. Provide a  confidence interval (to 4 decimals) for the difference between the proportions for the two populations. Enter negative answer as negative number.

  ,   

Answer 1

given data and necessary calculation are:-

the pooled estimate of proportion be:-

a).hypothesis:-

[ claim ]

test statistic be:-

p value is :-

[ using standard normal table ]

decsion:-

p value = 0.0060 < 0.05 (alpha)

we reject the null hypothesis. There is sufficient evidence to claim rates differ between single and married male policyholders.

b). z critical value for 95% confidence level, both tailed test be:-

the 95% confidence interval for the difference between the proportions for the two populations be:-

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