(a) State the hypotheses for this test and define the parameter of interest in full context. (b) Verify that the assumptions for the test are met. 1. Independence Assumption, checked by the Randomization Condition: 2. Sample Size Assumption, checked by the Success/Failure Condition: (c) What are the centre and spread of the normal distribution of p under the null hypothesis?

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The NTSB publishes the number of automobile crashes for different age groups. The NTSB claims
that young people aged 18–24 have an accident rate of 12% per year. A recent study found 134
crashes among 1000 young drivers, aged 18-24. At the a = 0.05 level of significance, has there
been a change in the true proportion of people aged 18-24 that have had an automobile crash?
(a) State the hypotheses for this test and define the parameter of interest in full context.
(b) Verify that the assumptions for the test are met.
1. Independence Assumption, checked by the Randomization Condition:
2. Sample Size Assumption, checked by the Success/Failure Condition:
(c) What are the centre and spread of the normal distribution of p under the null hypothesis?
E(p)
SD(P) =
(d) Compute the test statistic for this test.
(e) Draw a rough normal diagram for this test statistic and compute the p-value for the test.
(f) Assess the significance of this test:
(g) Make a conclusion for this test in full context.
Transcribed Image Text:The NTSB publishes the number of automobile crashes for different age groups. The NTSB claims that young people aged 18–24 have an accident rate of 12% per year. A recent study found 134 crashes among 1000 young drivers, aged 18-24. At the a = 0.05 level of significance, has there been a change in the true proportion of people aged 18-24 that have had an automobile crash? (a) State the hypotheses for this test and define the parameter of interest in full context. (b) Verify that the assumptions for the test are met. 1. Independence Assumption, checked by the Randomization Condition: 2. Sample Size Assumption, checked by the Success/Failure Condition: (c) What are the centre and spread of the normal distribution of p under the null hypothesis? E(p) SD(P) = (d) Compute the test statistic for this test. (e) Draw a rough normal diagram for this test statistic and compute the p-value for the test. (f) Assess the significance of this test: (g) Make a conclusion for this test in full context.
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