1. Type of test statistic: a. Z b. t c. Chi-Square d. F Degrees of freedom (if applicable)
AutoWrecks, Inc. sells auto insurance. AutoWrecks keeps close tabs on its customers' driving records, updating its rates according to the trends indicated by these records. AutoWrecks' records indicate that, in
a "typical" year, roughly 70% of the company's customers do not commit a moving violation, 10% commit exactly one moving violation, 15% commit exactly two moving violations, and 5% commit three or more
moving violations.
This past year's driving records for a random sample of 100 AutoWrecks customers are summarized by the first row of numbers in the table below. That row gives this year's observed frequency for each moving violation category for the sample of 100 AutoWrecks customers. The second row of numbers gives the
frequencies expected for a sample of 100 AutoWrecks customers if the moving violations distribution for this year is the same as the distribution for a "typical" year. The bottom row of numbers contains the
following value for each of the moving violation categories.
Answer the following to summarize the test of the hypothesis that there is no difference between this year's moving violation distribution and the distribution in a "typical" year. Use the 0.10 level of significance for the test.
1. Type of test statistic: a. Z
b. t
c. Chi-Square
d. F
Degrees of freedom (if applicable):
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