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You work for an insurance company

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Question


You work for an insurance company and are studying the relationship between types of crashes and the

vehicles involved. As part of your study, you randomly select 3495 vehicle crashes and organize the resulting data as shown in the contingency table. At 

α=0.01,can you conclude that the type of crash depends on the type of vehicle?

Identify the claim and state the null and alternative hypotheses.

Determine the degrees of freedom, find the critical value, and identify the rejection region.

Calculate the test statistic.

Decide to reject or fail to reject the null hypothesis. Then interpret the decision in the context of the original claim. How does this conclusion relate to the original claim?

Type of crash          Car  Pickup     Sport utility

 Single-vehicle        870    355         277

 Multiple-vehicle  1101   478       414

 
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