An Insurance Company Wants to Test the Hypothesis That the Mean

question 201

Essay

An insurance company wants to test the hypothesis that the mean amount of life insurance held by professional men equals that held by professional women. Accordingly, two independent simple random samples are taken from appropriate professional listings of men and women. The sample of 200 men reveals a mean amount of $140,000 with a standard deviation $26,000. The sample of 400 women shows a mean amount of $128,000 with a standard deviation of $3,000.
Test the hypothesis using a 0.05 significance level.
Test statistic = ______________
p-value = ______________
Critical Value(s) = ______________
Conclusion: ______________
Interpretation: __________________________________________
Construct 95% confidence interval for the difference in mean amount of life insurance held by professional men and women.
______________
Explain how to use the 95% confidence interval to test the appropriate hypotheses at = 0.05.
__________________________________________

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Definitions:

Offeree

The party to whom an offer is made, in the context of contract law, who has the option to accept or reject the proposal.

Binding Contract

An agreement between two or more parties that is enforceable by law.

Outdated

Pertains to something that is no longer current, useful, or relevant due to the passage of time or advances in technology or knowledge.

Voidable

A term referring to a contract that may be legally declared invalid or unenforceable by one of the parties.