It is claimed by a prominent insurance company that exactly 13% of drivers do not have...

It is claimed by a prominent insurance company that exactly 13% of drivers do not have insurance. The insurance company collects a sample of 600 drivers and finds that 120 of them do not have insurance. Test the claim using a level of significance equal to 0.01.

State the claim: LaTeX: H_0H 0: p ________13% claim

LaTeX: H_1H 1:pLaTeX: \ne≠13%

Determine the direction of the tails: Left, Right, or Two:

Find the critical value: +/-

Compute Test Point (round to 2 place values) :

Do we Reject or Do Not Reject?

Summarize: There is enough evidence to ____________ the claim.

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

suppose that 25% of all licensed drivers in a particular state do not have insurance. let...

suppose that 25% of all licensed drivers in a particular state do not have insurance. let x be the number of uninsured drivers in a random sample of size 40. what is the probability that between 7 and 14 (both inclusive) of the selected drivers are uninsured?

Automobile insurance companies require drivers they insure have a valid drivers’ license and will not pay...

Automobile insurance companies require drivers they insure have a valid drivers’ license and will not pay 100% of damage claims. Explain why.

The claims department at Wise Insurance Company believes that younger drivers have more accidents and, therefore,...

The claims department at Wise Insurance Company believes that younger drivers have more accidents and, therefore, should be charged higher insurance rates. Investigating a sample of 1,200 Wise policyholders revealed the following breakdown on whether a claim had been filed in the last 3 years and the age of the policyholder. Is it reasonable to conclude that there is a relationship between the age of the policyholder and whether or not the person filed a claim? Use the .05 significance...

12% of all drivers do not have a valid driving license, 6% of all drivers have...

12% of all drivers do not have a valid driving license, 6% of all drivers have no insurance, 4% have neither. The probability that a randomly selected driver fails to have insurance, given that he fails to have a valid license is about

An insurance company collects data on seat-belt use among drivers in a country. Of 1300 drivers...

An insurance company collects data on seat-belt use among drivers in a country. Of 1300 drivers 30-39 years old, 22% said that they buckle up, where as 384 of 1200 drivers 55-64 years old said that they did. At the 10% significance level, do the data suggest that there is a difference in seat-belt use between drivers 30-39 years old and those 55-64? Calculate the test statistic z=

An insurance company collects data on seat-belt use among drivers in a country. Of 2000 drivers...

An insurance company collects data on seat-belt use among drivers in a country. Of 2000 drivers 30 -39 years old, 23% said that they buckle up, whereas 482 of 1800 drivers 55-64 years old said that they did. Find a 90% confidence interval for the difference between the proportions of seat-belt users for drivers in the age groups 30-39 years and 55-64 years. Construct a 90% confidence interval.

At a recent conference, an executive from an insurance company claimed that more accidents with fatalities...

At a recent conference, an executive from an insurance company claimed that more accidents with fatalities involve drunk driving than not. To test this claim, you take a random sample of 120 accidents with fatalities and find that 75 of them involved drunk driving. Is this enough evidence to support the executive’s claim?

An insurance company believes that 30% of drivers are careless. The probability that a careless driver...

An insurance company believes that 30% of drivers are careless. The probability that a careless driver will have an accident in any one-year period is 0.4. The probability that a careful driver will have an accident in any one-year period is 0.2. Find the probability that a driver will have an accident next year given that she has had an accident this year.

An insurance company insures two drivers, a safe driver and a risky driver. There is an...

An insurance company insures two drivers, a safe driver and a risky driver. There is an 8.5% chance the risky driver has an accident in a given year, in which case the cost (payout) to the company would be $1,000,000. The safe driver has a 1% chance of an accident, which costs the company $500,000. What is the expected payout (i.e., for accidents) to the company from insuring these two people?

In this experiment, we have claimed to measure the speed of sound in air. To do...

In this experiment, we have claimed to measure the speed of sound in air. To do this, we have used an audible frequency sweep. Why can we claim that the speed of sound will be the same over the bandwidth of the sweep? Is this assertion justified based on your results from experiment 2? Hint: Consider how sound (longitudinal pressure waves) propagate in a medium. (5 pts)

Subjects