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. −fOfE2 fE = −Observed frequencyExpected frequency2 Expected frequency Part 1 Fill in the missing values in the table. Round your responses for the expected frequencies to two or more decimal places. Round your −fOfE2fE responses to three or more decimal places. Send data to Excel No violations Exactly one violation Exactly two violations Three or more violations Total Observed frequency fO fO 61 fO 11 fO 21 fO 7 100 Expected frequency fE fE fE 10.00 fE 15.00 fE −fOfE2fE −fOfE2fE −fOfE2fE 0.100 −fOfE2fE 2.400 −fOfE2fE Part 2 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 0.05 level of significance for the test.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

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

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.

−fOfE2

=	−Observed frequencyExpected frequency2

Expected frequency

Part 1

Fill in the missing values in the table. Round your responses for the expected frequencies to two or more decimal places. Round your

−fOfE2fE

responses to three or more decimal places.

Send data to Excel

	No violations	Exactly one violation	Exactly two violations	Three or more violations	Total
Observed frequency fO	fO 61	fO 11	fO 21	fO 7	100
Expected frequency fE	fE	fE 10.00	fE 15.00	fE
−fOfE2fE	−fOfE2fE	−fOfE2fE 0.100	−fOfE2fE 2.400	−fOfE2fE

Part 2

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

0.05

level of significance for the test.

(a) Determine the type of test statistic to use. Type of test statistic: ▼(Choose one)
(b) Find the value of the test statistic. (Round your answer to two or more decimal places.)
(c) Find the p-value. (Round your answer to three or more decimal places.)
(d)Can we reject the hypothesis that there is no difference between this year's moving violation distribution and the distribution in a "typical" year? Yes No