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(Solution) - Auto insurance companies are beginning to consider raising rates for

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Auto insurance companies are beginning to consider raising rates for those who use cell phones while driving. A consumer group claims that the problem really isn't too serious because only 10% of drivers use cell phones. The insurance industry conducts a study and finds that among 500 randomly selected drivers, 90 use cell phones (based on data from Prevention magazine). At the 0.02 level of significance, test the consumer group's claim.
Test the given claim, and draw the appropriate graph. Use the traditional method or the P-value method of testing hypotheses (or your instructor may specify which method to use with assigned exercises). Assume that all samples have been randomly selected.


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This question was answered on: Jul 11, 2017

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