USING R- STUDIO: Along with interest rates, life expectancy is a component in pricing financial annuities....
USING R- STUDIO: Along with interest rates, life expectancy is a component in pricing financial annuities. Suppose that you know that last year life expectancy was 77 years for your annuity holders. Now you want to know if your clients this year have a longer life expectancy, on average, so you randomly sample n=20 of recently deceased annuity holders to see actual age at death. Using a 5% level of significance, test whether or not the new data shows evidence of your annuity holders now live longer than 77 years.
Here are the sample data (in years of life): 86 75 83 84 81 77 78 79 79 81 76 85 70 76 79 81 73 74 72 83
a) Does this sample indicate that life expectancy has increased? Test an appropriate hypothesis and state your conclusion (use a 5% level of significance).
b) For more accurate cost determination, suppose you want to estimate the life expectancy to within one year with 95% confidence. How many randomly selected records would you now need to sample
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USING R- STUDIO: Along with interest rates, life expectancy is a
component in pricing financial annuities....
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies....
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. The insurance company knows that, last year, the life expectancy of its policy holders was 77 years. They want to know if their clients this year have a longer life expectancy, on average, so the company randomly samples some of the recently paid policies to see if the mean life expectancy of policy holders has increased. The insurance company will only change their premium...
Insurance Companies track life expectancy information to assist in determing the cost of life insurance policies....
Insurance Companies track life expectancy information to assist in determing the cost of life insurance policies. Last year the average life expectancy of all policy holders 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 ages of the clients in the sample are shown below. 86 75 83 84 81 77 78 79 79 81 76 85 70 76...
Show all work: Insurance companies track life expectancy information to assist in determining the cost of...
Show all work: 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. Find...
6. Insurance companies track life expectancy information to assist in determining the cost of life insurance...
6. Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. They want to know if their clients this year have a longer life expectancy, on average, so the company randomly sampled 20 policyholders to see if the mean life expectancy of policyholders has increased. The mean life expectancy for the random sample was 78.6 years with a sample standard deviation of 5.12 years. The insurance company will only change their premium structure if...
You are interested in testing whether life expectancy differs based upon race, so you sample Tucson...
You are interested in testing whether life expectancy differs based upon race, so you sample Tucson residents of different races/ethnicities which yields the following results: Race/Ethnicity Asian African American Hispanic White Mean 83.5 years 71.5 years 77.2 years 79.5 years Standard Deviation 5.13 5.24 5.52 4.98 Sample Size 15 16 20 26 Use the incomplete ANOVA table below to answer the following questions. Note, you will need/be asked to complete the missing portions of this table first. Assume life expectancy...
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies....
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Life expectancy is a statistical measure of average time a person is expected to live, based on a number of demographic factors. Mathematically, life expectancy is the mean number of years of life remaining at a given age, assuming age-specific mortality rates remain at their most recently measured levels. Last year the average life expectancy of all the Life Insurance policyholders in Ontario...
(1 - 3) Two factories produce the same type of batteries. Sample data have been collected to test...
(1 - 3) Two factories produce the same type of batteries. Sample data have been collected to test whether the two factories produce identical product. The battery life (in hours) of each factory is shown below: Battery from Factory 1: 70, 80, 73, 77,75,71,70, 75, 74, 72 Battery from Factory 2: 85, 76, 82, 77, 81, 73, 69, 71,85, 76, 80, 75 (10%) Before conducting the t-test, we first need to know whether the standard deviation of two samples are...
Suppose that you have in your possession bivariate data giving birthrate and life expectancy information for...
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6. A bank with a branch located in Crown Point wants to develop an improved process for serving customers during the noon-to-lpm lunch period. Management decides to first study the waiting time of the current process. Data is collected from a random sample of 15 customer and their waiting time is recorded (in minutes) and is located in the Excel data file for this assignment under the tab CPBank. For comparative purposes, similar data is collected from a bank in...
A company that owns a grocery market chain wants to know if their new country theme will encourage shoppers to spend mor...
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6. Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. They want to know if their clients this year have a longer life expectancy, on average, so the company randomly sampled 20 policyholders to see if the mean life expectancy of policyholders has increased. The mean life expectancy for the random sample was 78.6 years with a sample standard deviation of 5.12 years. The insurance company will only change their premium structure if...
(1 - 3) Two factories produce the same type of batteries. Sample data have been collected to test whether the two factories produce identical product. The battery life (in hours) of each factory is shown below: Battery from Factory 1: 70, 80, 73, 77,75,71,70, 75, 74, 72 Battery from Factory 2: 85, 76, 82, 77, 81, 73, 69, 71,85, 76, 80, 75 (10%) Before conducting the t-test, we first need to know whether the standard deviation of two samples are...
Suppose that you have in your possession bivariate data giving birthrate and life expectancy information for a random sample of 15 countries. For each of the countries, the data give both x, the number of births per one thousand people in the country's population, and y, the country's female life expectancy in years. The least squares regression equation computed from your data is y = 84.06 -0.51x. Suppose that you're predicting the female life expectancy for a country whose birthrate...
6. A bank with a branch located in Crown Point wants to develop an improved process for serving customers during the noon-to-lpm lunch period. Management decides to first study the waiting time of the current process. Data is collected from a random sample of 15 customer and their waiting time is recorded (in minutes) and is located in the Excel data file for this assignment under the tab CPBank. For comparative purposes, similar data is collected from a bank in...
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