Test the given claim. Identify the null hypothesis, alternative hypothesis, test statistic, P-value, and then state the conclusion about the null hypothesis, as well as the final conclusion that addresses the original claim. Among 2126 passenger cars in a particular region, 237 had only rear license plates. Among 304 commercial trucks, 45 had only rear license plates. A reasonable hypothesis is that commercial trucks owners violate laws requiring front license plates at a higher rate than owners of passenger cars. Use a 0.10 significance level to test that hypothesis.
H0: Null Hypothesis: P1 P2
HA: Alternative Hypothesis: P1 < P2
n1= 2126
p1 = 237/2126 = 0.1115
n2 = 45
p2 = 45/304 = 0.1480
= (237 + 45)/(2126 +304)
= 282/2430 = 0.1160
Q =1 - P =0.8840
SE =
0.1160 X 0.8840 X (1/2126 + 1/304)
= 0.019634
Test statistic is:
Z = (0.1115 - 0.1480)/0.019634 = - 1.86
= 0.10
From Table, critical value of Z = - 1.28
Since calculated value of Z = - 1.86 is less than critical value of Z= - 1.28, the difference is significant. Reject null hypothesis.
Conclusion:
The data support the claim that commercial truck owners violate laws at a higher rate than owners of passenger cars.
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