Chapter 17, Problem 8P

Automobile insurance is much more expensive for teenage drivers than for older drivers. To justify this cost difference, insurance companies claim that the younger drive are much more likely to be involved in costly accidents. To test this claim, are researcher obtains information about registered drivers from the department of motor vehicles and selects a sample of n = 300 accident reports from the police department .The motor vehicle department reports the percentage of registered driver: in each age category as follows: l6% are younger than age 20; 28 % are 20-29 years old; and 56% are age 30 or older. The number of accident reports for each age group is as follows:

Under	Age	Age 30
Age20	20-29	or Older
68	92	140

a. Do the data indicate that the distribution of accidents for the three age group is significantly different from the distribution of drivers? Test with

a = .05.

b. Write a sentence demonstrating how the outcome of the hypothesis test would appear in a research report