# Test Statistic, P-value

AutoWrecks, Inc. sells auto insurance. AutoWrecks keeps close tabs on its customers' driving records, updating its rates according to the trends indicated by these records. AutoWrecks' records indicate that, in a "typical" year, roughly 70% of the company's customers do not commit a moving violation, 10% commit exactly one moving violation, 15% commit exactly two moving violations, and 5% commit three or more moving violations.

This past year's driving records for a random sample of 120 AutoWrecks customers is summarized in the first row of numbers in Table 1 below. This row gives this year's observed frequencies for each moving violation category for the sample of 120 AutoWrecks customers. The second row of numbers gives the frequencies expected for a sample of 120 AutoWrecks customers if the moving violations distribution for this year is the same as the distribution for a "typical" year. The bottom row of numbers in Table 1 contains the values

(fo-fE)^2  fo-fE = (observed frequency - expected frequency)^2  expected frequency

Fill in the missing values of Table 1.... Then, using the 0.05 level of significance, perform a test of the hypothesis that there is no difference between this year's moving violation distribution and the distribution in a "typical" year.

Round responses for the expected frequencies in the following table to at least 2 decimals

Summary of the Hypothesis test:

1. Choose one type of test statistic.: Z, t, Chi-square, or F

2. What is the value of the test statistic? Round answer to at least 3 decimals.

3. What is the p-value? Round answer to at least 3 decimals.

4. Can we reject the hypothesis that there is no difference between this year's moving violation distribution and the distribution in a "typical" year? Use the 0.05 level of significance. Yes / No

This question had an attachment with the following data...

(See attached file).

AutoWrecks, Inc: Fill in the missing values of Table 1. Then, using the 0.05 level of significance, perform a test of the hypothesis that there is no difference between this year's moving violation distribution and the distribution in a "typical" year.

#### Solution Summary

A Complete, Neat and Step-by-step Solution is provided in the attached file.