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A U.S. Department of Transportation study (July, 2001) of the level of cell phon

ID: 3158266 • Letter: A

Question

A U.S. Department of Transportation study (July, 2001) of the level of cell phone use by drivers while they

are in the act of driving a motor passenger vehicle found that for a random sample of 1,165 drivers selected

across the country, 35 were using their cell phone.

1) Form a 95% confidence interval for the proportion of drivers who use their cell phone while they are in the

act of driving their vehicle.

2) Conduct a test at =.05 to determine if the true driver cell phone use rate differs from .02.

Explanation / Answer

1.

Note that              
              
p^ = point estimate of the population proportion = x / n =    0.030042918          
              
Also, we get the standard error of p, sp:              
              
sp = sqrt[p^ (1 - p^) / n] =    0.005001317          
              
Now, for the critical z,              
alpha/2 =   0.025          
Thus, z(alpha/2) =    1.959963985          
Thus,              
Margin of error = z(alpha/2)*sp =    0.009802401          
lower bound = p^ - z(alpha/2) * sp =   0.020240518          
upper bound = p^ + z(alpha/2) * sp =    0.039845319          
              
Thus, the confidence interval is              
              
(   0.020240518   ,   0.039845319   ) [ANSWER]

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2.

Formulating the null and alternatuve hypotheses,          
          
Ho:   p   =   0.02
Ha:   p   =/=   0.02
As we see, the hypothesized po =   0.02      
Getting the point estimate of p, p^,          
          
p^ = x / n =    0.030042918      
          
Getting the standard error of p^, sp,          
          
sp = sqrt[po (1 - po)/n] =    0.004101711      
          
Getting the z statistic,          
          
z = (p^ - po)/sp =    2.44847043      
          
As this is a    2   tailed test, then, getting the p value,  
          
p =    0.014346421      

As P < 0.05, we   REJECT THE NULL HYPOTHESIS.      

There is significant evidence that the true driver cell phone use rate differs from 0.02 at 0.05 level. [CONCLUSION]

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