Free Response:

According to the Insurance Institute for Highway Safety, the national accident rate for
16-year old males was 24% during the year 2000. In a large city in the Midwest, a
random sample of 150 will be taken during the year 2000. Assume the accident rate for
16-year old males in this Midwestern city is the same as the national rate.

a) Identify the mean and standard deviation for the sampling distribution with n =
150 of the true proportion of accidents with 16-year old male drivers in this
Midwestern city. ​(2 pts.)

b) Explain why a normal approximation can be used for the sampling distribution
with n = 150 of the true proportion of accidents with 16-year old male drivers in
this Midwestern city. ​(2 pts.)

c) What is the probability that the random sample will have an accident rate of 24%
or higher? ​(2 pts.)