Exhibit 11-8
an Insurance Company Selected Samples of Clients Under $\le$

question 82

Multiple Choice

Exhibit 11-8
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.
-Refer to Exhibit 11-8 and let p_u represent the proportion under and po the proportion over the age of 18. The null hypothesis is

• A)p_u - p_o \(\le\) 0
• B)p_u - p_o \(\ge\) 0
• C)p_u - p_o \(\neq\) 0
• D)p_u - p_o = 0

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Definitions:

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate dispositional traits when explaining others' behaviors.

Actor-Observer Bias

A tendency to attribute one's own actions to external causes while attributing others' actions to their internal characteristics.

Illusory Correlation

The perception of a relationship between two variables when no such relationship actually exists.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.