A Major Insurance Firm Interviewed a Random Sample of 1500

question 30

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:

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision.

Preferred Alternative

The most favorable option or choice among a set of possibilities, especially in the context of decision making or policy formulation.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.