Perform a Chi-Square Independence Test Using the P-Value Approach, Provided

question 16

Essay

Perform a chi-square independence test using the P-value approach, provided the conditions for using the test are met.Be sure to state the hypotheses and the significance level, to obtain the expected frequencies, to compute the value of thetest statistic, to obtain the P-value, and to state your conclusion.
-A car insurance company performed a study to determine whether an association exists between age and the frequency of car accidents. They obtained the following sample data. At the 5% significance level, do the data provide sufficient evidence to conclude that an association exists between age and frequency of car accidents?

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Definitions:

Return on Assets Ratio

A measure of how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.

DuPont Approach

A method of performance measurement that breaks down return on equity (ROE) into three components: operating efficiency, asset use efficiency, and financial leverage, to help analyze a company's financial condition.

Return on Assets Ratio

A profitability ratio that indicates how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.