Insurance companies track life expectancy information toassist in determining th

Question

Insurance companies track life expectancy information toassist in determining the cost of life insurance policies. The insurance company will only increase their premium structure ifthere is evidence that people who buy their policies are livinglonger than 77 years on the average. For the following nulland alternative hypothesis: Ho: The average life expectancy of the insurancecompany's policy holders is 77 years. H: The average life expectancy of the insurancecompany's policy holders is more than 77 years. Which statements is a correct conclusion of the test if Ho isrejected? The insurance company should not increase their premiums The average life expectancy is less than 77 years The insurance company needs to increase their premiums Increase the premiums when the average age is 77 years The life expectancy of all policy holders is more than 77years Insurance companies track life expectancy information toassist in determining the cost of life insurance policies. The insurance company will only increase their premium structure ifthere is evidence that people who buy their policies are livinglonger than 77 years on the average. For the following nulland alternative hypothesis: Ho: The average life expectancy of the insurancecompany's policy holders is 77 years. H: The average life expectancy of the insurancecompany's policy holders is more than 77 years. Which statements is a correct conclusion of the test if Ho isrejected? The insurance company should not increase their premiums The average life expectancy is less than 77 years The insurance company needs to increase their premiums Increase the premiums when the average age is 77 years The life expectancy of all policy holders is more than 77years

Explanation / Answer

Which statements is a correct conclusion of the test if Ho isrejected? The insurance company should not increase their premiums The average life expectancy is less than 77 years The insurancecompany needs to increase their premiums Increase the premiums when the average age is 77 years The life expectancy of all policy holders is more than 77years

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