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A Random Sample of 160 Car Accidents Are Selected and Categorized

question 53

Essay

A random sample of 160 car accidents are selected and categorized by the age of the driver determined to be at fault. The results are listed below. The age distribution of drivers for the given categories is 18% for the under 26 group, 39% for the 26-45 group, 31% for the 46-65 group, and 12% for the group over 65. Test the claim that all ages have crash rates proportional to their number of drivers. Use α=0.05\alpha = 0.05  Age  Under 26 26454665 Over 65 Drivers 66392530\begin{array} { l | c c c c } \text { Age } & \text { Under 26 } & 26 - 45 & 46 - 65 & \text { Over } 65 \\\hline \text { Drivers } & 66 & 39 & 25 & 30\end{array}

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Definitions:

Salvage Value

The anticipated remaining worth of an asset when it reaches the end of its operational lifespan.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Working Capital

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

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