Compute hypothesis and z-test statistics and p-value

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In a city study, 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 & had 20 accidents, while the fleet of yellow fire trucks made 135,035 runs & had 4 accidents. At ? = .01, did the yellow fire trucks have a significantly lower accident rate?

(a) State the hypotheses.

(b) State the decision rule & sketch it

(c) Find the sample proportions & z test statistic.

(d) Make a decision.

(e) Find the p-value & interpret it.

(f) If statistically significant, do you think the difference is large enough to be important?

(g) Is the normality assumption fulfilled?

Reference no: EM13110085

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