Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Five years ago the average life expectancy of all policyholders was 77 years. ABI Insurance wants to determine if its clients now have a longer life expectancy compared to five years ago, on average, so it randomly samples some of its recently paid policies. The insurance company will only change its premium structure if there is evidence that people who buy their policies now are living longer than they were five years ago. The sample has a mean of 78.6 years and a standard deviation of 4.48 years. Which of the following are the correct null and alternative hypotheses? H0:μ = 77 and HA:μ > 77 H0:μ = 77 and HA:μ < 77 H0:μ = 77 and HA:μ ≠ 77 H0:μ ≠ 77 and HA:μ = 77
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Five years ago the average life expectancy of all policyholders was 77 years. ABI Insurance wants to determine if its clients now have a longer life expectancy compared to five years ago, on average, so it randomly samples some of its recently paid policies. The insurance company will only change its premium structure if there is evidence that people who buy their policies now are living longer than they were five years ago. The sample has a mean of 78.6 years and a standard deviation of 4.48 years. Which of the following are the correct null and alternative hypotheses?
|
H0:μ = 77 and HA:μ > 77 |
||
|
H0:μ = 77 and HA:μ < 77 |
||
|
H0:μ = 77 and HA:μ ≠ 77 |
||
|
H0:μ ≠ 77 and HA:μ = 77 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
