The “Pro-Wealth” insurance wants to calculate the difference between the average amount of term life insurance purchased per family and the average amount of life time insurance purchased per family. To obtain this data, one of the company's actuaries randomly selects 25 families who have term life insurance only and 27 families who have life time insurance only. Each sample was taken from families where the head was less than 45 years old. Use the data obtained with a confidence level of: 96%, to estimate the difference in the mean between the two groups, assuming the amount of insurance is normally distributed. For term insurance (term): xT = $ 76,000 sT = $ 22,500 and nT = 25 , while for whole life insurance: xT = $ 46,000 sT = $ 15,600 and nT = 27.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
100%

The “Pro-Wealth” insurance wants to calculate the difference between the average amount of term life insurance purchased per family and the average amount of life time insurance purchased per family. To obtain this data, one of the company's actuaries randomly selects 25 families who have term life insurance only and 27 families who have life time insurance only. Each sample was taken from families where the head was less than 45 years old. Use the data obtained with a confidence level of: 96%, to estimate the difference in the mean between the two groups, assuming the amount of insurance is normally distributed. For term insurance (term): xT = $ 76,000 sT = $ 22,500 and nT = 25 , while for whole life insurance: xT = $ 46,000 sT = $ 15,600 and nT = 27.

Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Types of Data and Their Measurement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman