Question
Automobile insurance is much more expensive for teenage drivers than for older drivers.To justify this cost difference, insurance companies claim that the younger drivers are
Automobile insurance is much more expensive for teenage drivers than for older drivers.To justify this cost difference, insurance companies claim that the younger drivers are much more likely to be involved in costly accidents.To test this claim, a researcher obtains information about registered drivers from a sample of n = 300 accident reports from the police department.The motor vehicle department reports the percentage of registered drivers in each age category as follows:
UnderAge Age 30
Age 2020-29or older
6892140
(a)Conduct a Chi-Square goodness of fit test to test whether the data indicate that the distribution of accidents for the three age groups is significantly different from the distribution of drivers?Test with alpha = .05
(b)Can you think of a good explanation for why the data came out the way it did?
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