Question

In: Statistics and Probability

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.

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