How sample indicate that insurance company should change

Reference no: EM13128379

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 policyholders 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 policyholders has increased. The insurance company will only change their premium structure if there is evidence that people who buy their policies are living longer than before.

Does this sample indicate that the insurance company should change its premiums because life expectancy has increased? Test an appropriate hypothesis and state your conclusion.

Reference no: EM13128379

Questions Cloud

Illustrate what is yonan new required return : Now suppose there is a shift in investor risk aversion, and the market risk premium increases by 2%. The risk-free rate and Yonan's beta remain unchanged. Illustrate what is Yonan's new required return?

Jake a traitor : Study Questions 1. Is Jake a traitor to his own people? Why or why not? What does the film want us to conclude? Do you agree? 2. Is the underlying philosophy of the film mostly one of ethical relativism or soft universalism? Explain.

Sketching of function knowing its derivative : The function f is differentiable on the interval [-1,1]. The table shows the values of f' for selected values of x. Sketch the graph of f, approximate the critical numbers, and identify the relative extrema.

How many carbon atoms does the sample contain : A sample of ethanol (C2H5OH) has a mass of 43.8 g.(a) How many carbon atoms does the sample contain?

How sample indicate that insurance company should change : Does this sample indicate that the insurance company should change its premiums because life expectancy has increased?

Illustrate what are the consequences of not telling : Illustrate what are the consequences of not telling the president of our gross miscalculations, both ethical and non-ethical? Are there other ethical implications or issues that you and the president need to consider in this situation?

Graphing from derivative : Please sketch a graph of a function f have the indicated characteristics. Please explain.

Net cash flow from financing activities : repayments of long-term borrowings of $3.5 million, interest payments of $780,000, repurchase of treasury shares of $500,000 and cash dividends declared of $1.1 million. Net cash flow from financing activities equals.

What the molarity of the naoh solution is : 25.0 ml of 0.212 M NaOH ia neutralized by 13.6 ml of an HCl solution. The molarity of the NAOH solution is?

User Account

All Pages