A Major Insurance Firm Interviewed a Random Sample of 1,200

question 98

Essay

A major insurance firm interviewed a random sample of 1,200 college students to find out the type of life insurance preferred,if any.The results follow:
$$\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\text { Insurance Preference }\\\begin{array} { | l | c c c | } \hline \text { Gender } & \text { Term } & \text { Whole Life } & \text { Na Insurance } \\\hline \text { Female } & 100 & 80 & 325 \\\text { Male } & 160 & 60 & 475 \\\hline\end{array}\end{array}$$ Is there evidence that life insurance preference of male students is different than that of female students? Test using the 5% level of significance.

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Definitions:

Dividend Payment Claims

Rights of shareholders to receive a portion of a company's earnings distributed as dividends.

Dividend Growth Model

A model for valuing a stock by assuming constant, usually non-zero growth in dividends per share.

Capital Gains Yield

The increase in the price of an investment, calculated as the percentage difference between the current price and the purchase price.