Answer to Question #158367 in Statistics and Probability for Tooba

Question

You recently received a job with a company that manufactures an automobile antitheft device. To conduct  an advertising campaign for the product, you need to make a claim about the number of automobile thefts 

per year. Since the population of various cities in the United States varies, you decide to use rates per 10,000 

people. (The rates are based on the number of people living in the cities.) Your boss said that last year the 

theft rate per 10,000 people was 44 vehicles. You want to see if it has changed. The following are rates per 

10,000 people for 36 randomly selected locations in the United States.

Using this information, answer these questions.

1. What hypotheses would you use?

2. Is the sample considered small or large?

3. What assumption must be met before the hypothesis test can be conducted?

4. Which probability distribution would you use?

5. Would you select a one- or two-tailed test? Why?

6. What critical value(s) would you use?

7. Conduct a hypothesis test. Use δ=30.3.

8. What is your decision?

9. What is your conclusion?

10. Write a brief statement summarizing your conclusion.

11. If you lived in a city whose population was about 50,000, how many automobile thefts per year would you expect to occur?

Answer 1

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