Question

(Round all intermediate calculations to at least 4 decimal places.) A recent study by Allstate Insurance...

(Round all intermediate calculations to at least 4 decimal places.)

A recent study by Allstate Insurance Co. finds that 82% of teenagers have used cell phones while driving (The Wall Street Journal, May 5, 2010). In October 2010, Massachusetts enacted a law that forbids cell phone use by drivers under the age of 18. A policy analyst would like to determine whether the law has decreased the proportion of drivers under the age of 18 who use a cell phone. Use Table 1 and Table 2.


a.

Select the null and the alternative hypotheses to test the policy analyst’s objective.

  • H0: p = 0.82; HA: p ≠ 0.82

  • H0: p ≤ 0.82; HA: p > 0.82

  • H0: p ≥ 0.82; HA: p < 0.82


b.

Suppose a sample of 200 drivers under the age of 18 results in 150 who still use a cell phone while driving. What is the value of the test statistic? (Negative values should be indicated by a minus sign. Round your answer to 2 decimal places.)


  Test statistic   


The p-value is:
  • p-value < 0.01

  • 0.01 ≤ p-value < 0.025

  • 0.025 ≤ p-value < 0.05

  • 0.05 ≤ p-value < 0.10

  • p-value ≥ 0.10

  

c.

At α = 0.05, do you reject the null hypothesis?

  • Yes, since the p-value is greater than α.

  • Yes, since the p-value is smaller than α.

  • No, since the p-value is greater than α.

  • No, since the p-value is smaller than α.

  

Test using the critical value approach with α = 0.05.


d-1.

Calculate the critical value. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)


  Critical value   


d-2.

What is the conclusion?

  • The law has been effective since the value of the test statistic falls in the rejection region.

  • The law has not been effective since the value of the test statistic falls in the rejection region.

  • The law has been effective since the value of the test statistic does not fall in the rejection region.

  • The law has not been effective since the value of the test statistic does not fall in the rejection region.

Homework Answers

Answer #1

The statistical software output for this problem is:

Hence,

a) H0: p ≥ 0.82; HA: p < 0.82

b) Test statistic = -2.58

p-value < 0.01

c) Yes, since the p-value is smaller than α.

d - 1) Critical value = -1.65

d - 2) The law has been effective since the value of the test statistic falls in the rejection region.

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