1. A random sample of 400 college students was selected and 120 of them had at least one motor vehicle accident in the previous two years. A random sample of 600 young adults not enrolled in college was selected and 150 of them had at least one motor vehicle accident in the previous two years. At the .05 level, you are testing whether there is a significant difference in the proportions of college students and similar aged non college students having accidents during the two year period. Is this a 1 or 2 tail test? this a one sample or two sample test? Is this a test of sample means or sample proportions? What are your critical values? What is the value of your pooled proportion? What is the value of your test statistic? What is your decision? If you determine not to reject the null hypothesis what is your conclusion? (There is evidence of difference in the proportions of college aged students and non college aged students There is no evidence of difference in the proportions of college aged students The data is inconclusive None of the above) 2. There are two car dealerships in a particular area. The mean monthly sales at the two dealerships are about the same. However, one of the dealerships (dealership A) is boasting to corporate headquarters that his dealership’s monthly sales are more consistent. An industry analyst reviews the last seven months at dealership A and finds the standard deviation of the seven monthly sales to be 14.79. He reviews the last eight months at dealership B and finds the standard deviation of the eight monthly sales to be 22.95. Using the .01 significance level you will test to conclude if the analyst finds evidence that the boast of dealership A is correct. What will be your critical value? What is the value of the test statistic? Using the .01 significance level does the analyst find evidence that the boast of dealership A is correct?
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