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April 14th, 2010, 10:45 AM   #1
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Hypthesis testing - t-test statistic

Hello,

I am working on the question below and I believe that it is necessary to apply the t-test since the sigma is not known. However, I would need the sample standard deviation to apply the t-test and I don't quite understand how I should calculate it or extract it out of the given information.

For drivers in the 20-24 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 20-24 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 20-24 age bracket in New York City is higher than 34%? Explain.

Helpful for any hints and suggestions!
Thanks...
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