The managers of an automotive insurance company investigated whether the customers in region A have a higher proportion of speeding tickets than the customers in region B. The managers selected 154
customers from region A at random and found that 79
have had a speeding ticket. The managers also selected 148
customers from region B and found that 67
have had a speeding ticket.
To test whether the results could be explained by random chance, the managers simulated 1,000 rerandomizations of the data and then subtracted the sample proportion of region B from the sample proportion of region A in each of the simulations. The table shows the results of the differences.
The difference in the sample proportions is not significant because 13.7% of the rerandomizations had a difference less than or equal to −0.06.
The difference in the sample proportions is not significant because 13.7 percent of the rerandomizations had a difference less than or equal to negative 0.06 .
The difference in the sample proportions is significant because only 5% of the rerandomizations had a difference greater than or equal to 0.1.
The difference in the sample proportions is significant because only 5 percent of the rerandomizations had a difference greater than or equal to 0.1 .
The difference in the sample proportions is significant because only 4.2% of the rerandomizations had a difference less than or equal to −0.1.
The difference in the sample proportions is significant because only 4.2 percent of the rerandomizations had a difference less than or equal to negative 0.1 .
The difference in the sample proportions is not significant because 17.3% of the rerandomizations had a difference greater than or equal to 0.06.