If You Live in California, the Decision to Buy Earthquake

question 109

Short Answer

If you live in California, the decision to buy earthquake insurance is an important one. A survey revealed that only 133 of 337 randomly selected residences in one California county were protected by earthquake insurance. What is the p-value associated with the test statistic calculated to test the claim that less than 40 percent of the county residents are protected by earthquake insurance?

---

Definitions:

Government Intervention

Actions taken by a government to influence or directly regulate the economy, often to correct market failures and promote economic stability.

Chemical Hazard Control

The methods and practices involved in reducing or eliminating exposure to harmful chemical substances in the environment or workplaces.

Government Intervention

The involvement by the government in the economy, with actions that can include regulations, subsidies, tariffs, and direct provision of goods and services.

Externalities

Costs or benefits arising from an economic activity that affect other parties who did not choose to incur that cost or benefit.