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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