Statistics: significant difference in the proportions of single and married persons having an accident
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The research department at the home office of New Hampshire Insurance conducts ongoing research on the causes of automobile accidents, the characteristics of the drivers, and so on. A random sample of 400 policies written on single persons revealed 120 had at least one accident in the previous three-year period. Similarly, a sample of 600 policies written on married persons revealed that 150 had been in at least one accident. At the .05 significance level, is there a significant difference in the proportions of single and married persons having an accident during a three-year period?
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Solution Summary
The differences in proportions hypothesis test for a research department is answered are determined.
Solution Preview
Please refer to the attachment.
a) State the hypotheses:
Ho: S = M HA: S M
b) State the significance level: = 0.05
c) State the test statistic:
The p-value is the probability of observing a difference in sample proportions more extreme than 0.3 - 0.25 = 0.05 ...
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