Insurance componies track life expertancy info to assist in determining the cost of life insurance polocies. The insurance compony knows that last year the life expectancy of its polocy holders was 77 years. They want to know if their clients this year have a longer life expectancy, on average, so the company randomy samples some of the recently paid polices to see if the mean life expectancy of polcy holders has increased. Sample: 86,75, 83, 84, 81, 77, 78, 79, 79,81, 76, 85, 70,76, 79,81, 73, 74, 72, 83. 1) Does this sample indicate that the insurance company should change its premiums because life expectancy has increased? 2) For more accurate cost determination, the insurance companies want to estimate the life expectancy to within one year with 95% confidence. How many randomly selected records would you need to have
Insurance componies track life expertancy info to assist in determining the cost of life insurance polocies. The insurance compony knows that last year the life expectancy of its polocy holders was 77 years. They want to know if their clients this year have a longer life expectancy, on average, so the company randomy samples some of the recently paid polices to see if the mean life expectancy of polcy holders has increased.
Sample: 86,75, 83, 84, 81, 77, 78, 79, 79,81, 76, 85, 70,76, 79,81, 73, 74, 72, 83.
1) Does this sample indicate that the insurance company should change its premiums because life expectancy has increased?
2) For more accurate cost determination, the insurance companies want to estimate the life expectancy to within one year with 95% confidence. How many randomly selected records would you need to have?
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