Moving Companies Are Required by the Government to Publish a Carrier

question 108

Multiple Choice

Moving companies are required by the government to publish a Carrier Performance Report each year. One of the descriptive statistics they must include is the annual percentage of shipments on which a $50 or greater claim for loss or damage was filed. Suppose two companies, Econo-Move and On-the-Move, each decide to estimate this figure by sampling their records, and they report the data shown in the following table. The owner of On-the-Move is hoping to use these data to show that the company is superior to Econo-Move with regard to the percentage of claims filed. Which test would be used to properly analyze the data in this experiment?
$$\begin{array} { l c c } \hline & \text { E cono- Move } & \text { On-the- Move } \\\hline \text { Total shipments sampled } & 900 & 750 \\\text { Number of shipments with a claim c } \$ 50 & 162 & 60 \\\hline\end{array}$$

• A) Z test for the difference between two means
• B) separate variance t test for the difference between two means
• C) F test for the difference between two variances
• D) Z test for the difference between two proportions

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Definitions:

Asphalt Shingles

Asphalt shingles are a type of roofing material made from fiberglass or organic materials saturated with asphalt and coated with mineral granules, used for waterproofing roofs.

Commercial Impracticability

A doctrine that allows parties to a contract to be excused from performing their obligations when unforeseen events make performance excessively difficult or costly.

Discharge

The completion, termination, or fulfillment of a legal duty, obligation, or debt.

Performance

The execution, accomplishment, or fulfillment of duties, contracts, or other obligations according to their terms.