According to a 2009 Lawyers

question 18

Essay

According to a 2009 Lawyers.com survey,only 35% of adult Americans had a will (The Wall Street Journal,December 12,2011).Suppose a recent survey of 250 adult Americans found 100 adults with wills.
A)Specify the competing hypotheses to determine whether the proportion of adult Americans that have a will differs from the proportion reported for 2009.
B)Calculate the value of the test statistic and the p-value.
C)At the 5% significance level,is the proportion different? Explain.

• A)Specify the competing hypotheses to determine whether the proportion of adult Americans that have a will differs from the proportion reported for 2009.
• B)Calculate the value of the test statistic and the p-value.
• C)At the 5% significance level,is the proportion different? Explain.

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Definitions:

Return Requirement

The minimum expected rate of return necessary for an investment to be considered worthwhile by an investor, reflecting the risk level.

Annual Cash Flows

The total amount of money being transferred into and out of a business over the course of a year, indicative of its operational efficiency and profitability.

Ordinary Annuity

A series of equal payments made at the end of consecutive periods over a fixed length of time.

Annuity Due

A series of equal payments made at the beginning of consecutive periods over a fixed length of time.