Auto insurance companies are beginnning to consider raising rates for those who use mobile phones while driving. A consumer group claims that only 15% of drivers use mobile phones. The insurance industry conducts a study and finds that among 500 randomly selected drivers, 90 use mobile phones. At 0.05 level of significance, test the group's claim. (1) State the hypotheses. (2) Check the assumptions of the test and compute the test statistic (Round your answer to three decimal place). (3) Find the p- value: (Round your answer to three decimal place). (4) Make a decision and state the conclusion.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 30PPS
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Auto insurance companies are beginnning to consider raising rates for those who use
mobile phones while driving. A consumer group claims that only 15% of drivers use
mobile phones. The insurance industry conducts a study and finds that among 500
randomly selected drivers, 90 use mobile phones. At 0.05 level of significance, test the
group's claim. (1) State the hypotheses. (2) Check the assumptions of the test and
compute the test statistic (Round your answer to three decimal place). (3) Find the p-
value. (Round your answer to three decimal place). (4) Make a decision and state the
conclusion.
Transcribed Image Text:Auto insurance companies are beginnning to consider raising rates for those who use mobile phones while driving. A consumer group claims that only 15% of drivers use mobile phones. The insurance industry conducts a study and finds that among 500 randomly selected drivers, 90 use mobile phones. At 0.05 level of significance, test the group's claim. (1) State the hypotheses. (2) Check the assumptions of the test and compute the test statistic (Round your answer to three decimal place). (3) Find the p- value. (Round your answer to three decimal place). (4) Make a decision and state the conclusion.
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