A Major Insurance Firm Interviewed a Random Sample of 1500

question 88

Essay

A major insurance firm interviewed a random sample of 1500 college students to find out the type of life insurance preferred, if any. The results follow: $$\begin{array} { | l | c c c | } \hline &{ \text { Insurance Preference } } \\\hline \text { Gender } & \text { Term } & \text { Whole life } & \text { No insurance } \\\hline \text { Female } & 170 & 110 & 470 \\\hline \text { Male } & 195 & 75 & 480 \\\hline\end{array}$$ Is there evidence that the life insurance preference of male students is different to that of female students? Test using the 5% level of significance.

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Definitions:

Nonparametric Test

A different phrasing for nonparametric statistics, these are tests used for analyzing data when the assumptions for parametric tests cannot be met, focusing on the ranks or orders of the data.

McNemar

A statistical test used to determine if there are differences on a dichotomous dependent variable between two related groups.

Fisher's Exact

A statistical significance test used in the analysis of contingency tables where sample sizes are small.

Expected Frequency

The number of occurrences predicted in a category of a contingency table based on probabilistic models.