Saturday

August 23, 2014

August 23, 2014

Posted by **Johnathon** on Friday, April 15, 2011 at 10:49pm.

2.) Car insurance companies assume that the longer a person has been driving, the less likely they will be in an accident, and therefore charge new drivers higher insurance premiums than experienced drivers. To determine whether driving experience is related to the amount of car accidents, you survey a random sample of 12 Torontonians and ask them about the number of years they have been driving, and the number of car accidents they have been involved in during the past year. The data are presented below:

Driver #ofyrsdriving(X) #accidents (Y)

A 4.5 3

B 2.5 5

C 1.5 3

D 3 3

E 1.5 6

F 5 2

G 5 0

H 2 4

I 3 1

J 4 2

K 1 5

L 3 2

a. Determine whether the assumptions of car insurance companies are valid. Assuming á=0.05, include the hypotheses, critical test statistic, conclusion, and all formulas and calculations.

b. Is it appropriate to conclude that lack of driving experience causes accidents? Why or why not?

**Related Questions**

Statistics/Math - I want to test H0: p = .12 vs. Ha: p ≠ .12 using a test ...

statistics - Would this be 2 tailed test or a 1 tailed test? " Do dog owners ...

immediate help needed statistics one tailed hypo - the average weekly earnings ...

Statistics - For all of the following use the five step process to solve the ...

statistics z or t test - the average weekly earnings of a production worker ...

statistics - Then, for the following two examples, determine the null and ...

Statistics - A statistics student hands each of 300 classmates 2 cookies side by...

statistics - Use Excel to find the p-value for each test statistic.a. Right-...

Statistics - Find the probability of correctly answering the first 2 questions ...

statistics - 20. Explain how the power of a hypothesis test is influenced by ...