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:

Watching People

The act of observing individuals' behaviors and interactions, often used in market research or social studies to gather insights.

Asking Questions

A communication technique used to gather information, clarify understanding, engage in conversation, or guide a discussion towards a specific objective.

Marketing Research

The process of gathering, analyzing, and interpreting information about a market, including consumer preferences, competition, and market trends, to support decision-making.

Carmex

A brand known for its range of lip balm and skincare products.