Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In addition to submitting a print-out of the worksheet, also submit the following, referencing the data in your print-out and your textbook or Notes: Suppose

In addition to submitting a print-out of the worksheet, also submit the following, referencing the data in your print-out and your textbook or Notes:

Suppose that an insurance company is wondering if a person's age influences whether or not they file insurance claims.To test the hypothesis, the insurance company gathers the data shown in your Observed Frequencies table.

(1)State the null and alternative hypotheses (use your variable names).

(2)a.State the decision rule at the .10 significance level.

b.Draw the chi-square graph, insert the table, and computed chi-

square statistics, insert the confidence level value and significance level value, and label the Accept and Reject regions.

c.Should the insurance company accept or reject H0at the .10

significance level?Type your answer next to or beneath the requested graph for question (2. b.).

d.What type of error can possibly be made? State with part c.

(3)a.State the decision rule at the .02 significance level.

b.Draw the chi-square graph, insert the table, and computed chi-

square statistics, insert the confidence level value and significance level value, and label the Accept and Reject regions.

c.Should the insurance company accept or reject H0at the .02

significance level?Type your answer next to or beneath the requested graph for question (3.b.).

d.What type of error can possibly be made?State with part c.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Markets A Property Rights Approach

Authors: Terry L Anderson, Gary D Libecap

1st Edition

0521279658, 9780521279659

More Books

Students also viewed these Economics questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago