An Insurance Company Selected Samples of Clients Under 18 Years

question 12

Multiple Choice

An insurance company selected samples of clients under 18 years of age and over 18 and recorded the number of accidents they had in the previous year. The results are shown below. ​ We are interested in determining if the accident proportions differ between the two age groups. Let p_u represent the proportion under and p_o the proportion over the age of 18. The null hypothesis is

• A) p_u - p_o ≤ 0.
• B) p_u - p_o ≥ 0.
• C) p_u - p_o ≠ 0.
• D) p_u - p_o = 0.

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Definitions:

Critical Thinkers

Individuals who actively and skillfully analyze, assess, and reconstruct their thinking, thereby making informed decisions.

Fewest Assumptions

A principle suggesting that the simplest explanation, requiring the least speculative assumptions, is often the most accurate.

Casual Observation

An informal method of gathering data or evidence without a structured framework or hypothesis in mind.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, characterized by open-mindedness, skepticism, and an analytical approach.