According to statistics reported on CNBC, a surprising number of motor vehicles

Question

According to statistics reported on CNBC, a surprising number of motor vehicles are not covered by insurance. Simple results, consistent with the CNBC report, showed 48 of 187 vehicles were not covered by insurance. 1a) can you see from the data that the proportion of vehicles not covered by insurance is different from 20% at (alpha) = 0.1?

step 4: ____ = _____

step 5: ____ H0 _____

step 6: __ ___ ___ ___

step 7 (fill in row if the Z table is appropiate) P-value = ______ (fill in row if the t table is appropiate. The lower boundary must go on the left and rhe upper boundary on the right.) ___ ____ P-value ___ ____

can you please explain how to get the anser and solve the question. TIA.

Explanation / Answer

Given that,
possibile chances (x)=48
sample size(n)=187
success rate ( p )= x/n = 0.2567
success probability,( po )=0.2
failure probability,( qo) = 0.8
null, Ho:p=0.2
alternate, H1: p!=0.2
level of significance, = 0.1
from standard normal table, two tailed z /2 =1.64
since our test is two-tailed
reject Ho, if zo < -1.64 OR if zo > 1.64
we use test statistic z proportion = p-po/sqrt(poqo/n)
zo=0.25668-0.2/(sqrt(0.16)/187)
zo =1.9379
| zo | =1.9379
critical value
the value of |z | at los 0.1% is 1.64
we got |zo| =1.938 & | z | =1.64
make decision
hence value of | zo | > | z | and here we reject Ho
p-value: two tailed ( double the one tail ) - Ha : ( p != 1.93787 ) = 0.05264
hence value of p0.1 > 0.0526,here we reject Ho
ANSWERS
---------------
null, Ho:p=0.2
alternate, H1: p!=0.2
test statistic: 1.9379
critical value: -1.64 , 1.64
decision: reject Ho
p-value: 0.05264

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.