Drivers born under the astrological sign of Capricorn are the worst drivers in Australia, according to an article that appeared in the Australian newspaper The Mercury (October 26, 1998). This statement was based on a study of insurance claims that resulted in the following data for male policyholders of a large insurance company
a. Assuming that it is reasonable to treat the male policyholders of this particular insurance company as a random sample of male insured drivers in Australia, are the observed data consistent with the hypothesis that the proportion of male insured drivers is the same for each of the 12 astrological signs?
b. Why do you think that the proportion of Capricorn policyholders is so much higher than would be expected if the proportions are the same for all astrological signs?
c. Suppose that a random sample of 1000 accident claims submitted to this insurance company is selected and each claim classified according to the astrological sign of the driver. (The accompanying table is consistent with accident rates given in the article.)
Test the null hypothesis that the proportion of accident claims submitted by drivers of each astrological sign is consistent with the proportion of policyholders of each sign. Use the given information on the distribution of policyholders to compute expected frequencies and then carry out an appropriate test.

  • CreatedSeptember 19, 2015
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