Moving companies are required by the government to publish a Carrier Performance Report each year.One of the descriptive statistics they must include is the annual percentage of shipments on which a $50 or greater claim for loss or damage was filed.Suppose two companies,Econo-Move and On-the-Move,each decide to estimate this figure by sampling their records,and they report the data shown in the following table. $$\begin{array} { | l | l | l | }
\hline & \text { Econo-Move } & \text { On-the-Move } \
\hline \text { Total shipments sampled } & 900 & 750 \
\hline \text { Number of shipments with a claim } \geq \$ 50 & 162 & 60 \
\hline
\end{array}$$ The owner of On-the-Move is hoping to use these data to show that the company is superior to Econo-Move with regard to the percentage of claims filed.Which test would be used to properly analyse the data in this experiment?
A) Z test for the difference between two proportions.
B) Separate variance t test for the difference between two means.
C) Z test for the difference between two means.
D) Test for the difference between two variances.

Question

Moving companies are required by the government to publish a Carrier Performance Report each year.One of the descriptive statistics they must include is the annual percentage of shipments on which a $50 or greater claim for loss or damage was filed.Suppose two companies,Econo-Move and On-the-Move,each decide to estimate this figure by sampling their records,and they report the data shown in the following table. $$\begin{array} { | l | l | l | } 
\hline & \text { Econo-Move } & \text { On-the-Move } \
\hline \text { Total shipments sampled } & 900 & 750 \
\hline \text { Number of shipments with a claim } \geq \$ 50 & 162 & 60 \
\hline
\end{array}$$ The owner of On-the-Move is hoping to use these data to show that the company is superior to Econo-Move with regard to the percentage of claims filed.Which test would be used to properly analyse the data in this experiment?
A) Z test for the difference between two proportions.
B) Separate variance t test for the difference between two means.
C) Z test for the difference between two means.
D) Test for the difference between two variances.

Quizplus · Accepted Answer

The appropriate test for comparing the percentages of claims filed by two moving companies is the Z test for the difference between two proportions. This test compares the difference between two sample proportions to the null hypothesis that there is no difference between the population proportions. The other options (B, C, and D) are not appropriate for this scenario as they test for differences in means or variances, which are not relevant to the question at hand.

Moving Companies Are Required by the Government to Publish a Carrier