In: Statistics and Probability
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.