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Question

An insurance company checks police records on 582 accidents selected at random and notes that teenagers were at the wheel in 91 of them. a) Create a 98% confidence interval for the percentage of all auto accidents that involve teenage drivers. b) Explain what your interval means. c) Explain what "98% confidence" means. d) A politician urging tighter restrictions on drivers' licenses issued to teens says, "In one of every five auto accidents, a teenager is behind the wheel." Does your confidence interval support or contradict this statement? Explain.

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In this problem, we need to construct a confidence interval for the proportion of car accidents that includes teenagers given that 9191 out of 582582 accidents involve teenagers.

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