According to a Nationwide Mutual Insurance Company Driving While Distracted Survey conducted in 2008, 85% of the drivers interviewed said that they have talked on their cell phones while driving (The New York Times, July 19, 2009). The survey included drivers aged 16 to 61 years selected from 48 states. Assume that this result holds true for the 2008 population of all such drivers in the United States. In a recent random sample of 800 drivers aged 16 to 61 years selected from the United States, 90% said that they have talked on their cell phones while driving. Test at 5% level of significance the hypothesis that the current percentage of such drivers who have talked on their cell phones while driving is greater than 85%.

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Types of Bias

Statistics is the study of data collection, organization, analysis, interpretation, and presentation. Statistical bias is a characteristic of a statistical technique or its findings in which the expected value deviates from the actual root quantitative parameter being estimated. According to the actual definition of bias, it refers to the tendency of a statistic to overestimate or underestimate a parameter.