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 level. Age Group No Claim Claim 16 up to 25 170 74 25 up to 40 240 58 40 up to 55 400 44 55 or older 190 24 Total 1,000 200 With Excel inputs and formulas

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

3. Are younger drivers more likely to have accidents in their driveways? Traffic engineers tabulated types...

3. Are younger drivers more likely to have accidents in their driveways? Traffic engineers tabulated types of car accidents by drivers of various ages. Out of a total of 82,486 accidents involving drivers aged 15-24 years, 4243 of them occurred in a driveway. Out of a total of 219,170 accidents involving drivers aged 25-64 years, 10,701 of them occurred in a driveway. Use the 0.05 level of significance.

A large car insurance company is conducting a study of accidents for male and female drivers.

A large car insurance company is conducting a study of accidents for male and female drivers. They want to know if on average male drivers (who tend to be thought of as more aggressive drivers) have more accidents than female drivers. Data on the number of accidents in the past 5 years is collected for randomly selected drivers who are insured by this company. An analysis of the results produced the following summary statistics.Group Statistics NMeanStd DeviationStd Error MeanMale322.191.710.3026Female311.231.380.2482Using α=0.01, do...

An insurance company is interested in estimating the percentage of auto accidents that involve teenage drivers....

An insurance company is interested in estimating the percentage of auto accidents that involve teenage drivers. Suppose the percentage of auto accidents that involved teenage drivers last year was 15%. The company wants to know if the percentage has changed this year. They check the records of 600 accidents selected at random from this year and note that teenagers were at the wheel in 60 of them. (a) Create a 90% confidence interval for the percentage of all auto accidents...

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.

1. The Allstate Insurance Company determined the average number of years between accidents for drivers in...

1. The Allstate Insurance Company determined the average number of years between accidents for drivers in a large number of U.S. cities. The ‘Accidents’ sheet in the ‘Lab12 Chp 10n11 S20’ spreadsheet contains the results for 32 randomly selected cities east of the Mississippi River and 32 randomly selected cities west of the Mississippi River. (a) Are the samples independent or paired? (b) Consider constructing a 90% confidence interval for the difference in average number of years between accidents of...

A car insurance company suspects that the younger the driver is, the more reckless a driver...

A car insurance company suspects that the younger the driver is, the more reckless a driver he/she is. They take a survey and group their respondents based on age. Of 217 respondents between the ages of 16-25 (Group 1), 183 claimed to wear a seat belt at all times. Of 398 respondents who were 26+ years old (Group 2), 322 claimed to wear a seat belt at all times. Find a 95% confidence interval for the difference in proportions. Can...

The research department of an insurance company conducted a survey of the cause of automobile accidents...

The research department of an insurance company conducted a survey of the cause of automobile accidents in the last calendar year. A random sample of 200 policies written on single persons revealed that 60 had been in at least one accident. A similar survey of 300 policies written on married persons revealed that 75 had been in at least one accident. At the .05 level of significance, is there a significant difference in the proportion of the population of single...

The research department of an insurance company conducted a survey of the cause of automobile accidents...

In any given year, an insurance company believes the following: -0.6 of drivers are safe. -0.25...

In any given year, an insurance company believes the following: -0.6 of drivers are safe. -0.25 of safe drivers wear seatbelts -0.10 of unsafe drivers wear seatbelts -0.10 of safe drivers experience an accident in a year -0.20 of unsafe drivers experience an accident in a year -Given a driver experiences an accident, the driver has probability 0.01 they will be taken to the hospital if they were wearing a seatbelt -Given a driver experiences an accident, the driver has...

car insurance company suspects that the younger the driver is, the more reckless a driver he/she...

car insurance company suspects that the younger the driver is, the more reckless a driver he/she is. They take a survey and group their respondents based on age. Of 217 respondents between the ages of 16-25 (Group 1), 183 claimed to wear a seat belt at all times. Of 398 respondents who were 26+ years old (Group 2), 322 claimed to wear a seat belt at all times. Find a 95% confidence interval for the difference in proportions. Can it...

Subjects