Question

1. You are curious as to whether the law actually does reduce highway deaths. Using information in the table below, perform an appropriate test to determine whether speed limits are associated with lower traffic deaths (at a .01 significance level). Explain your reasoning below the table if necessary.

-> There IS a speed limit law:

    Variable |       Obs        Mean    Std. Dev.       Min        Max

-------------+--------------------------------------------------------

traffic_1992 |         8         1.5    .3338092        1.1        2.1

-> There IS NOT a speed limit law:

    Variable |       Obs        Mean    Std. Dev.       Min        Max

-------------+--------------------------------------------------------

traffic_1992 |        42    1.909524    .4410683          1        2.7

Answer 1