Insurance Companies Track Life Expectancy Information to Assist in Determining

question 7

Essay

Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. The insurance company knows that, last year, the life expectancy of its policyholders was 77 years. They want to know if their clients this year have a longer life expectancy, on average, so the company randomly samples some of the recently paid policies to see if the mean life expectancy of policyholders has increased. The insurance company will only change their premium structure if there is evidence that people who buy their policies are living longer than before. $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | } \hline 86 & 75 & 83 & 84 & 81 & 77 & 78 & 79 & 79 & 81 \\\hline 76 & 85 & 70 & 76 & 79 & 81 & 73 & 74 & 72 & 83 \\\hline\end{array}$$
-Does this sample indicate that the insurance company should change its premiums because ctancy has increased? Test an appropriate hypothesis and state your conclusion.

---

Definitions:

Temperate Grassland

A biome characterized by moderate rainfall, hot summers, and cold winters, hosting vast expanses of grasses and few trees, suitable for agriculture and grazing.

Steppe

A large area of flat, unforested grassland, especially in southeastern Europe or Siberia.

Pampas

Vast, fertile grasslands found in South America, particularly in Argentina, Uruguay, and southern Brazil, used for grazing and agriculture.

Grazing Herbivores

Animals that feed on plants by cropping them close to the ground, often playing a crucial role in maintaining the health of ecosystems.