nsurance 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. If the P-value associated with the test statistic is 0.063, as alpha = 0.05, which of the following statements is true. I. we fail to reject the null hypothesis. II. ABI Insurance shouldn't need to increase its premiums because there is little evidence to indicate an increase in average life expectancy. III. we reject the null hypothesis. I only II only III only I and II
nsurance 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. If the P-value associated with the test statistic is 0.063, as alpha = 0.05, which of the following statements is true. I. we fail to reject the null hypothesis. II. ABI Insurance shouldn't need to increase its premiums because there is little evidence to indicate an increase in average life expectancy. III. we reject the null hypothesis. I only II only III only I and II
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 10CYU
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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. If the P-value associated with the test statistic is 0.063, as alpha = 0.05, which of the following statements is true. I. we fail to reject the null hypothesis. II. ABI Insurance shouldn't need to increase its premiums because there is little evidence to indicate an increase in average life expectancy. III. we reject the null hypothesis.
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