document.write( "Question 385495: In Dallas, some fire trucks were painted yellow (instead of red) to heighten their visibility. During
\n" ); document.write( "a test period, the fleet of red fire trucks made 153,348 runs and had 20 accidents, while the fleet of
\n" ); document.write( "yellow fire trucks made 135,035 runs and had 4 accidents. At α = .01, did the yellow fire trucks
\n" ); document.write( "have a significantly lower accident rate? (a) State the hypotheses. (b) State the decision rule and
\n" ); document.write( "sketch it. (c) Find the sample proportions and z test statistic. (d) Make a decision. (e) Find the
\n" ); document.write( "p-value and interpret it. (f ) If statistically significant, do you think the difference is large enough to
\n" ); document.write( "be important? If so, to whom, and why? (g) Is the normality assumption fulfilled? Explain.\r
\n" ); document.write( "\n" ); document.write( "My question is...I don't know where to start. How do I know what formula to use? To find the z value, excel wants variable ranges. ?? How do I find the sample proportions?\r
\n" ); document.write( "\n" ); document.write( "I am in a crunch situation and need the answers, but I also want to know how to do the problems.\r
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Algebra.Com's Answer #272741 by stanbon(75887)\"\" \"About 
You can put this solution on YOUR website!
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,
\n" ); document.write( "p-hat(red) = 20/153,348 = 0.0001304
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\n" ); document.write( "while the fleet of yellow fire trucks made 135,035 runs and had 4 accidents.
\n" ); document.write( "p-hat(yellow) = 4/135,035 = 0.00002962
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\n" ); document.write( "Difference of sample proportions: 0.0001006
\n" ); document.write( "At α = .01, did the yellow fire trucks have a significantly lower accident rate?
\n" ); document.write( "(a) State the hypotheses.
\n" ); document.write( "Ho: p(red) - p(yellow) =0
\n" ); document.write( "Ha: p(red) - p(yellow) > 0
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\n" ); document.write( "(b) State the decision rule and sketch it.
\n" ); document.write( "Reject Ho is z > 2.326
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\n" ); document.write( "(c) Find the sample proportions and z test statistic.
\n" ); document.write( "Using a TI calculator for a 2-Proportion Z-Test I get
\n" ); document.write( "z = 2.961\r
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\n" ); document.write( "(d) Make a decision.
\n" ); document.write( "Reject Ho
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\n" ); document.write( "(e) Find the p-value and interpret it.
\n" ); document.write( "P(z>2.961) = 0.0015..
\n" ); document.write( "0.015% of test results could have given stronger evidence for rejecting Ho.
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\n" ); document.write( "(f ) If statistically significant, do you think the difference is large enough to be important? If so, to whom, and why?
\n" ); document.write( "I'll leave that to you.
\n" ); document.write( "Looks like yellow wins.
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\n" ); document.write( "(g) Is the normality assumption fulfilled? Explain
\n" ); document.write( "Independence and x < 10%
\n" ); document.write( "I'll leave that to you.
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\n" ); document.write( "Cheers,
\n" ); document.write( "Stan H.\r
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