Do Interstate Drivers Exceed the Speed Limit More Frequently Than

question 30

Essay

Do interstate drivers exceed the speed limit more frequently than local motorists? This vital question was addressed by the Road Traffic Authority. A random sample of the speeds of 2500 randomly selected cars was categorised according to whether the car was registered in the state or in some other state, and whether or not the car was violating the speed limit. The data are shown below. $$\begin{array} { | l | l | l | } \hline & \text { Local cars } & \text { Interstate cars } \\\hline \text { Speeding } & 521 & 328 \\\hline \text { Not speeding } & 1141 & 510 \\\hline\end{array}$$ Do these data provide enough evidence to support the highway patrol's claim at the 5% significance level?

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Definitions:

Flexible Factory Overhead Budget

A budget that adjusts overhead costs in response to changes in actual production or activity, allowing for more accurate costing.

Direct Materials Price Variance

The difference between the actual price and the standard price of direct materials multiplied by the actual quantity of direct materials used in producing a product.

Units

In business and accounting, units refer to the individual pieces or quantities of a product or service.

Variable Factory Overhead

Refers to the indirect, variable costs that change with the level of production output, such as utilities for the manufacturing plant.