7. (16 points) An auto insurance company wants to know if being an LA resident and having a bad driving record are independent or dependent events. The accompanying table summarizes a randomly selected sample data of LAon LA residents who have a badot bad driving record for the past 5 years. Test the claim that being an LA resident and having a bad driving record are independent events at 0.05 significance level.

(a) Null & Alternative Hypothesis

(b) Test Statistic

(c) Use the P ValueORthe Critical Region method (Circle your choice)

(d) RejectH0or Fail to RejectH0?

(e) State the conclusion in a complete sentence

Contingency Table Table for Expected Frequencies LA resident Non LA resident total LA resident Non LA resident total Bad driving Bad driving record 68 87 record Not bad (good) Not bad (good) driving record 124 48 driving record total total\f