An Insurance Company Has Conducted a Study of Its Accident

question 34

Multiple Choice

An insurance company has conducted a study of its accident claim experience and the size of the automobile involved in the accident.A random sample of its claim files over the past 12 months was selected and claims were categorized according to the size of car (compact,midsize,or large) ,and also according to the amount of damage (minor,extensive,or write-off) .The following table summarizes the results for the sample of 360 claims. What would the appropriate null hypothesis be for this study?

• A)The distribution of count for the extent of damage is the same across all sizes of car.
• B)The proportion of cars with minor,extensive,or write-off for the extent of damages is the same regardless of the size of car.
• C)The population proportions for all cells and categories are equal.
• D)The extent of damage variable and the size of car variable are homogeneous.
• E)The extent of damage variable and the size of car variable are independent.

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