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April 14th, 2010, 10:45 AM  #1 
Newbie Joined: Feb 2010 Posts: 2 Thanks: 0  Hypthesis testing  ttest statistic
Hello, I am working on the question below and I believe that it is necessary to apply the ttest since the sigma is not known. However, I would need the sample standard deviation to apply the ttest and I don't quite understand how I should calculate it or extract it out of the given information. For drivers in the 2024 age bracket, there is a 34% rate of car accidents in one year (based on data from the National Safety Council). An insurance investigator finds that in a group of 500 randomly selected drivers aged 2024 living in New York City. 40% had accidents in the last year.  If the 34% rate is correct, estimate the probability that in a group of 500 randomly selected drivers, at least 40% had accidents in the last year.  Based on your finding in (a), is there strong evidence supporting the claim that the accident rate in the 2024 age bracket in New York City is higher than 34%? Explain. Helpful for any hints and suggestions! Thanks... 

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