Question: Problem 2

In Dallas, some fire trucks were painted yellow (instead of red) to heighten their visibility. During a test period, the fleet of red fire trucks made 153,348 runs and had 20 accidents, while the fleet of yellow fire trucks made 135,035 runs and had 4 accidents. At α = .01, did the yellow fire trucks have a significantly lower accident rate? (a) State the hypotheses. (b) State the decision rule and sketch it. (c) Find the sample proportions and z test statistic. (d) Make a decision. (e) Find the p-value and interpret it. (f ) If statistically significant, do you think the difference is large enough to be important? If so, to whom, and why? (g) Is the normality assumption fulfilled? Explain.

Source: The Wall Street Journal, June 26, 1995, p. B1.

Accident Rate for Dallas Fire Trucks

Statistic Red Fire Trucks Yellow Fire Trucks

Number of accidents x1 = 20 accidents x2 = 4 accidents

Number of fire runs n1 = 153,348 runs n2 = 135,035 runs