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

question 12

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:
$$\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\text { Insurance Preference }\\\begin{array} { | l | c c c | } \hline \text { Gender } & \text { Term } & \text { Whole Life } & \text { No Insurance } \\\hline \text { Female } & 100 & 80 & 325 \\\text { Male } & 160 & 60 & 475 \\\hline\end{array}\end{array}$$ 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:

Indifference Map

A set of indifference curves, each representing a different level of utility, that together show the preferences of a consumer.

Budget Constraint

outlines the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.

Demand Curve

A graphic representation showing the relationship between the price of a good or service and the quantity demanded by consumers for a given period.

Sweaters

Clothing items made from wool or other yarn, designed to cover the upper body and provide warmth.