Car Crashes 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 investiga- tor finds that in a group of 500 randomly selected drivers aged 20-24 living in New York City, 42% had accidents in the last year.
a. How many drivers in the New York City group of 500 had accidents in the last year?
b. Assuming that the same 34% rate applies to New York City, find the mean and standard deviation for the numbers of people in groups of 500 that can be expected to have accidents.
c. Based on the preceding results, does the 42% result for the New York City drivers appear to be unusually high when compared to the 34% rate for the general population? Does it appear that higher insurance rates for New York City drivers are justified?