Question

A manager for an insurance company believes that customers have the following preferences for life insurance products: 30 % prefer Whole Life, 30 % prefer Universal Life, and 40 % prefer Life Annuities. The results of a survey of 333 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. 110

Universal 105

Annuities. 118

Step 1 of 10: State the null and alternative hypothesis.

Step 2 of 10: What does the null hypothesis indicate about the proportions of customers who prefer each insurance product?

Step 3 of 10: State the null and alternative hypothesis in terms of the expected proportions for each category.

Step 4 of 10: Find the expected value for the number of customers who prefer Whole Life. Round your answer to two decimal places.

Step 5 of 10: Find the expected value for the number of customers who prefer Universal Life. Round your answer to two decimal places.

Step 6 of 10: Find the value of the test statistic. Round your answer to three decimal places.

Step 7 of 10: Find the degrees of freedom associated with the test statistic for this problem.

Step 8 of 10: Find the critical value of the test at the 0.010.01 level of significance. Round your answer to three decimal places.

Step 9 of 10: Make the decision to reject or fail to reject the null hypothesis at the 0.010.01 level of significance.

Step 10 of 10: State the conclusion of the hypothesis test at the 0.010.01 level of significance.

Answer 1