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In: Statistics and Probability

A life insurance salesperson claims the average worker in the city of Rome has no more...

A life insurance salesperson claims the average worker in the city of Rome has no more than $25,000 of personal life insurance. To test this claim, you randomly sample 100 workers in Rome. You find that this sample of workers has a mean $26,650 of personal life insurance. The population standard deviation is $12,000. Determine whether the test shows enough evidence to reject the null hypothesis posed by the salesperson. Assume α = 0.05.

a) State null and alternative hypothesis

b) Determine the level of significance and identify if the test requires one-sided or two-sided test

c) Establish the decision rule using critical value, test statistic and p value method

d) Write a concluding statement

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Expert Solution

orchestra answered 1 year ago
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