Consider the Following to Answer the Question(s) Below

question 34

Multiple Choice

Consider the following to answer the question(s) below:
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Last year the average life expectancy of all policyholders was 77 years. ABI Insurance wants to determine if their clients now have a longer life expectancy, on average, so they randomly sample some of their recently paid policies. The insurance company will only change their premium structure if there is evidence that people who buy their policies are living longer than before. The sample has a mean of 78.6 years and a standard deviation of 4.48 years.

-The P-value associated with the test statistic is

• A) 0.025.
• B) 0.228.
• C) 0.01.
• D) 0.05.
• E) 0.063.

---

Definitions:

Unofficial Communication System

A communication network that operates outside formal channels within an organization, often known as the "grapevine."

Eyeglasses

Optical devices consisting of lenses mounted in a frame that aid in correcting or assisting vision.

Superior

An individual with a higher rank or position who often has supervisory or managerial responsibilities over others.

Upward Communication

The process through which employees communicate information, feedback, or concerns upward in the organizational hierarchy to their superiors.