Question

A manager for an insurance company believes that customers have the following preferences for life insurance products: 20%prefer Whole Life, 40%40% prefer Universal Life, and 40%prefer Life Annuities. The results of a survey of 251customers were tabulated. Is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data?

Product	Number
Whole	4848
Universal	7070
Annuities	133133

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Step 1 of 10:

State the null and alternative hypothesis.

Answer 1

Solution: A manager for an insurance company believes that customers have the following preferences for life insurance products: 20%prefer Whole Life, 40% prefer Universal Life, and 40%prefer Life Annuities. The results of a survey of 251customers were tabulated. Is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data?

Step 1 of 10:

State the null and alternative hypothesis.

Answer: The null and alternative hypotheses are given below:

Preferences for life insurance products are as per the manager's belief

Preferences for life insurance products are not as per the manager's belief