Progressive Insurance Would Like to Test the Hypothesis That a Difference

question 39

Multiple Choice

Progressive Insurance would like to test the hypothesis that a difference exists in the proportion of students in 12^th grade who text while driving when compared to the proportion of 11^th grade drivers who text. A random sample of 160 12^th grade students found that 84 texted while driving. A random sample of 175 11^th grade students found that 70 texted while driving. If Population 1 is defined as 12^th grade drivers and Population 2 is defined as 11th grade drivers, and using α = 0.05, which one of the following statements is true?

• A)Because the p- value is less than α, Progressive Insurance can conclude that a difference exists in the proportion of students in 12^th grade who text while driving when compared to the proportion of 11^th grade drivers who text.
• B)Because the p- value is greater than α, Progressive Insurance can conclude that a difference exists in the proportion of students in 12^th grade who text while driving when compared to the proportion of 11^th grade drivers who text.
• C)Because the p- value is greater than α, Progressive Insurance cannot conclude that a difference exists in the proportion of students in 12th grade who text while driving when compared to the proportion of 11^th grade drivers who text.
• D)Because the p- value is less than α, Progressive Insurance cannot conclude that a difference exists in the proportion of students in 12^th grade who text while driving when compared to the proportion of 11^th grade drivers who text.

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Definitions:

Days' Sales

A financial metric estimating the number of days required to convert a company's inventory into sales, also known as inventory turnover period.

Cost Of Goods Sold

The expenses directly associated with manufacturing products that a company sells.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Current Position

Refers to the financial status and condition of an entity at a specific point in time, indicating its ability to meet short-term obligations.