Discussion:
Q1. A survey of 120 high school students shows that 39 of them work over 20 hours per week during the school year. Does it demonstrate the conjecture that more than 25% of the high school students work over 20 hours per week during the school year?
Q2. Each year an insurance company reviews its claim experience in order to set future rates. Regarding their damage-only automobile insurance policies, at least one claim was made on 2073 of the 12,299 policies in effect for the year. Treat these data as a random sample for the population of all possible damage-only policies that could be issued.
(a) Test, at a level α= 0.05, the null hypothesis that the probability of at least one claim is 0.16 versus a two-sided alternative.
(b) Calculate the P - value and comment on the strength of evidence.