(Step-by-Step) For drivers in the 20-24 age bracket, there is a 34% rate of car accidents in one year. An insurance investigator finds that in a group of
Question: For drivers in the 20-24 age bracket, there is a 34% rate of car accidents in one year. An insurance investigator 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.
- How many drivers in the New York City group of 500 had accidents in the last year?
- 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.
- 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?
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