Based on information from a large insurance company, 68% of all damage liability claims are made by single people under the age of 25. A random sample of 53 claims showed that 41 were made by single people under the age of 25. Does this indicate that the insurance claims of single people under the age of 25 is higher than the national percent reported by the large insurance company

No, it doesn't indicate that the insurance claims of single people under the age of 25 is higher than the national percent reported by the large insurance company

Step-by-step explanation:

Let's first state the hypotheses.

Null hypothesis; H0: p = 0.68

Alternative hypothesis; Ha: p > 0.68

A random sample of 53 claims showed that 41 were made by single people under the age of 25.

Thus; p^ = 41/53 = 0.7736

Let's find the test statistic from the formula;

z = (p^ - p_o)/√(p_o(1 - p_o)/n)

z = (0.7736 - 0.68)/√(0.68(1 - 0.68)/41)

z = 0.0936/0.07285

z = 1.28

From online p-value from z-score calculator, using z = 1.28, one tail hypothesis and significance level of 0.05,we have;

P(z > 1.28) = 0.100273

The p-value gotten is greater than the significance value and so we fail to reject the null hypothesis and conclude that there is insufficient evidence to support the claim.

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