An insurance company checks police records of 577 accidents and finds that teena

Question

An insurance company checks police records of 577 accidents and finds that teenagers were at the wheels in 87 accidents.
You are to test the null hypothesis that the proportion of accidents with teen-agers at the wheels is : Ho = 0.20.
Calculate the p-value of your test of significance for the proportion of auto accidents that involve teenagers.

Round answer to four decimals. Thank you!

An insurance company checks police records of 577 accidents and finds that teenagers were at the wheels in 87 accidents.
You are to test the null hypothesis that the proportion of accidents with teen-agers at the wheels is : Ho = 0.20.
Calculate the p-value of your test of significance for the proportion of auto accidents that involve teenagers.

Round answer to four decimals. Thank you!

Explanation / Answer

p ( teen) = x/n = 87/577 = .1508

p0 = .20

So. Z = (p-p0)/sqrt(p0*p0'/n) = (.1508-.20)/sqrt(.20*.80/577) = -2.96

The p-value corresponding to this is 0.0031

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