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. 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 analyze the data in this experiment?
$$\begin{array} { l c c }
\hline & \text { E cono- Move } & \text { On-the- Move } \
\hline \text { Total shipments sampled } & 900 & 750 \
\text { Number of shipments with a claim c } \$ 50 & 162 & 60 \
\hline
\end{array}$$

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. 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 analyze the data in this experiment?
$$\begin{array} { l c c } 
\hline & \text { E cono- Move } & \text { On-the- Move } \
\hline \text { Total shipments sampled } & 900 & 750 \
\text { Number of shipments with a claim c } \$ 50 & 162 & 60 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The data involves proportions of shipments with claims, so a Z test for the difference between two proportions is appropriate.

Moving Companies Are Required by the Government to Publish a Carrier