A manager for an insurance company believes that customers have the following pr

Question

A manager for an insurance company believes that customers have the following preferences for life insurance products: 30 % prefer Whole Life. 40 % prefer Universal Life, and 30 % prefer Life Annuities. The results of a survey of 220 customers were tabulated, is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data? ProductNumber 86 FO 70 Annuities 64 Whole Universal Copy Data Step 3 of 10: State the null and alternative hypothesis in terms of the expected proportions for each category. Answer(How to Enter) 2 Points Keypad 0: P Pun Annuities Ha: There is some difference amongst the proportions.

Explanation / Answer

Ho: pwhole =0.3 ; puniversal =0.4 ; pannuities =0.3

applying chi square godness of fit test:

from above  expected value for "whole" =66

expected value for "annuities" =66

value of the test statistic =9.803

degree of freedom =(categories-1) =3-1=2

critical value at 0.005 significance =10.597

as test statistic is not higher then critical value ; fail to reject null hypotheiss

observed Expected Chi square category Probability O E=total*p =(O-E)^2/E whole 0.300 86.000 66.00 6.06 universal 0.400 70.000 88.00 3.68 anuiities 0.300 64.000 66.00 0.06 1 220 220 9.8030

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