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856. As the automobile accident rate increases, insurers are forced to increase their premium rates. Companies such as Allstate have recently been running a campaign

856. As the automobile accident rate increases, insurers are forced to increase their premium rates. Companies such as Allstate have recently been running a campaign they hope will result in fewer accidents by their policyholders. For each sixmonth period that a customer goes without an accident, Allstate will reduce the customer's premium rate by a certain percentage. Companies like Allstate have reason to be concerned about driving habits, based on a survey conducted by Drive for Life, a safety group sponsored by Volvo of North America, in which 1,100 drivers were surveyed. Among those surveyed, 74% said that careless or aggressive driving was the biggest threat on the road. Onethird of the respondents said that cell phone usage by other drivers was the driving behavior that annoyed them the most. Based on these data, assuming that the sample was a simple random sample, construct and interpret a 95% confidence interval estimate for the true proportion in the population of all drivers who are annoyed by cell phone users. 864. The MainStay Investments of New York Life Investment Management survey of respondents between the ages of 26 to 82 indicated that 66% of seniors, 61% of baby boomers, and 58% of Generation X expect IRAs to be their primary source of income in retirement. The margin of error was given as 5 percentage points. a. Calculate a 95% confidence interval for the proportion of seniors who expect IRAs to be their primary source of income in retirement. b. Although the sample size for the entire survey was listed, the sample size for each of the three generations was not given. Assuming the confidence level was 95%, determine the sample size for each of the three generations. 930. Suppose a recent random sample of employees nationwide that have a 401(k) retirement plan found that 18% of them had borrowed against it in the last year. A random sample of 100 employees from a local company who have a 401(k) retirement plan found that 14 had borrowed from their plan. Based on the sample results, is it possible to conclude, at the = 0.025 level of significance, that the local company had a lower proportion of borrowers from its 401(k) retirement plan than the 18% reported nationwide

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