Question

A manager for an insurance company believes that customers have the following preferences for life insurance products: 20% prefer Whole Life, 20% prefer Universal Life, and 60% prefer Life Annuities. The results of a survey of 200 customers 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	36
Universal	58
Annuities	106

1. State the null and alternative hypothesis.

2. Determine which distribution to use for the test statistic and state the level of significance.

3. Gather data and calculate the necessary sample statistics.

4. Draw a conclusion and interpret the decision.

Answer 1