question archive An insurance company knows that, last year , the life expectancy of its policyholders was 77 years
An insurance company knows that, last year , the life expectancy of its policyholders was 77 years
Subject:StatisticsPrice: Bought3
An insurance company knows that, last year , the life expectancy of its policyholders was 77 years. They want to know if they're living longer. The company randomly samples some of the recently paid policies to see if the mean life expectancy of policyholders has increased. The insurance company will only change their premium structure there is evidence that people who buy their policies are living longer than before.
86,75,83,84,81,77,78,79,79,81
76,85,70,76,79,81,73,74,72,83
n = 20
mean = 78.6
sd = 4.363
Does this sample indicate that the company should change its premiums because life expectancy has increased. alpha = 0.05
check conditions
state hypothesis in symbols and words
test statistic
P - value
conclusion
For more accurate cost determination, the insurance companies want to estimate the life expectancy to within one year with 90% confidence. How many randomly selected records would they need to have? is it 99,836.1
