Many environmental groups and politicians are suggesting a return to the federal 55-mile-per-hour (mph) speed limit on

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Many environmental groups and politicians are suggesting a return to the federal 55-mile-per-hour (mph) speed limit on America’s highways. They argue that not only will a lower national speed limit reduce greenhouse emissions, it will also increase traffic safety. A researcher believes that a lower speed limit will not increase traffic safety because he feels that traffic safety is based on the variability of the speeds with which people are driving, rather than the average speed. The researcher gathers the speeds of 40 cars from a highway with a speed limit of 55 mph (Highway 1) and the speeds of 40 cars from a highway with a speed limit of 65 mph (Highway 2). A portion of the data is shown in the accompanying table.


a. Calculate the mean and the median for each highway.

b. Calculate the standard deviation for each highway.

c. Do the data support the researcher’s belief? Explain.

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Business Analytics Communicating With Numbers

ISBN: 9781260785005

1st Edition

Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen

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