California insurance companies wanted to study factors (e.g., the proximity to a major earthquake fault line) that may influence homeowners’ decisions to purchase earthquake insurance. Surveys were mailed to randomly selected households in three California counties to investigate the possible proximity effect. The data collected are shown below: Los Angeles San Bernardino Santa Clara sample size 1,000 1,400 1,200 Number with 377 469 390 earthquake insurance Los Angeles County is located closest among the three to a major earthquake fault line. Are homeowners in Los Angeles County more likely to purchase earthquake insurance than those in San Bernardino County? Test using α = 0.05. (Optional) Are homeowners in Los Angeles County more likely to purchase earthquake insurance than those in Santa Clara County? Use α = 0.05.
California insurance companies wanted to study factors (e.g., the proximity to a major earthquake fault line) that may influence homeowners’ decisions to purchase earthquake insurance. Surveys were mailed to randomly selected households in three California counties to investigate the possible proximity effect. The data collected are shown below:
Los Angeles San Bernardino Santa Clara
Number with 377 469 390
earthquake insurance
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Los Angeles County is located closest among the three to a major earthquake fault line. Are homeowners in Los Angeles County more likely to purchase earthquake insurance than those in San Bernardino County? Test using α = 0.05.
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(Optional) Are homeowners in Los Angeles County more likely to purchase earthquake insurance than those in Santa Clara County? Use α = 0.05.
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