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The rollover rate of sport utility vehicles is a transportation safety issue. Sa

ID: 3155195 • Letter: T

Question

The rollover rate of sport utility vehicles is a transportation safety issue. Safety advocates claim that manufacturer A's vehicle has a higher rollover rate than that of manufacturer B. One hundred crashes for each of these vehicles were examined. The rollover rates were P_A = 0.35 and P_B = 0.24. Construct a 95% lower bound on the difference in the two rollover rates. Provide a practical interpretation of this interval. P_1 - P_2 Round your answer to 3 decimal places. Since this interval the value zero, we are 95% confident there? significant difference in the rollover rate.

Explanation / Answer

Getting p1^ and p2^,          
          
p1^ = x1/n1 =    0.35      
p2 = x2/n2 =    0.24      
          
Also, the standard error of the difference is          
          
sd = sqrt[ p1 (1 - p1) / n1 + p2 (1 - p2) / n2] =    0.064023433      
          
For the   95%   confidence level, then  
          
alpha = (1 - confidence level) =    0.05      

By table/technology,

z(alpha) =    1.644853627      

Hence,

lower bound = p1^ - p2^ - z(alpha/2) * sd =    0.004690824 = 0.005 [ANSWER]      

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