1. Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. The insurance company knows that, last year, the life expectancy of its
policyholders was 77 years. They want to know if their clients this year have a longer life expectancy, on average, so the company randomly samples some of the recently paid policies to see if the mean life expectancy of policyholders has increased. The insurance company will only change their premium structure if there is evidence that people who buy their policies are living longer than before.
86 75 83 84 81 77 78 79 79 81 76 85 70 76 79 81 73 74 72 83
Does this sample indicate that the insurance company should change its premiums because life expectancy has increased? Test an appropriate hypothesis and state your conclusion. Find and interpret a 95% confidence interval.
And how do I even start this question
Recently Asked Questions
- Juggernaut Satellite Corporation earned $18 million for the fiscal year ending yesterday. The firm also paid out 25 percent of its earnings as dividends
- We covered the valuation of Bonds, Preferred Stock and Common Stock this week as well as the following TCO. Summarize the main points you have learned
- Follow Up - Calculating a Bonds Yield to Maturity Amazon has a bond with a 10% annual coupon rate, 15 years to maturity and a par value of $1000. The