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Show all work: Insurance companies track life expectancy information to assist in determining the cost of...

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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.   Suppose ABI samples 100 recently paid policies. This sample yields a mean of 77.7 years and a standard deviation of 3.6 years.

  1. Find the standard error.
  2. Find the margin of error for the .10 level of significance.
  3. Find a 90% confidence interval and interpret.
  4. Using a hypothesis test, at the .10 level of significance, ‘is the life expectancy of clients, on average, longer than 77 years?

State the null and alternative hypothesis

Find the Critical value

Calculate the test statistic

What is your decision?

math   Statistics-And-Probability   
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