AQA Further AS Paper 2 Statistics 2018 June — Question 8

Exam BoardAQA
ModuleFurther AS Paper 2 Statistics (Further AS Paper 2 Statistics)
Year2018
SessionJune
TopicChi-squared distribution

8 An insurance company groups its vehicle insurance policies into two categories, car insurance and motorbike insurance. The number of claims in a random sample of 80 policies was monitored and the results summarised in contingency Table 1. \begin{table}[h]
\captionsetup{labelformat=empty} \caption{Table 1}
\multirow{2}{*}{}Number of claims
0123 or moreTotal
\multirow[b]{3}{*}{Type of insurance policy}Car91011535
Motorbike19138545
Total2823191080
\end{table} The insurance company decides to carry out a \(\chi ^ { 2 }\)-test for association between number of claims and type of insurance policy using the information given in Table 1. 8
  1. The contingency table shown in Table 2 gives some of the exact expected frequencies for this test. Complete Table 2 with the missing exact expected values. \begin{table}[h]
    \captionsetup{labelformat=empty} \caption{Table 2}
    \multirow{2}{*}{}Number of claims
    0123 or more
    \multirow{2}{*}{Type of insurance policy}Car10.06254.375
    Motorbike10.6875
    \end{table} 8
  2. Carry out the insurance company's test, using the \(10 \%\) level of significance.
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