Hypothesis Testing

The use of cellular phones in automobiles has increased dramatically in the last few years. Of concern to traffic experts, as well as manufacturers of cellular phones, is the effect on accident rates. Is someone who is using a cellular phone more likely to be involved in a traffic accident? What is your conclusion from the following sample information? Use the .05 significance level.

Had accident in the last year Did not have accident in the last year
Cellular phones in use 25 300
Cellular phones not in use 50 400

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