The claims department at Wise Insurance Company believes that younger drivers have more accidents and, therefore, should be charged higher insurance rates. Investigating a sample of 1,200 Wise policyholders revealed the following breakdown on whether a claim had been filed in the last three years and the age of the policyholder.

Is it reasonable to conclude that there is a relationship between the age of the policyholder and whether or not the person filed a claim?

Use the .05 significance level.

Transcribed Image Text:

Age Group No Claim Claim 16 up to 25 170 74 25 up to 40 240 58 40 up to 55 400 44 55 or older 190 24 Total 1,000 200