Exhibit 11-2 An Insurance Company Selected Samples of Clients Under 18 Years

question 104

Multiple Choice

Exhibit 11-2
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.

-Refer to Exhibit 11-2. The test statistic is

• A)0.96
• B)1.96
• C)2.96
• D)3.96

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Definitions:

NAFTA Region

Refers to the geographic and economic region under the North American Free Trade Agreement, encompassing Canada, the United States, and Mexico.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.