Assume that the U.K. insurance survey is based on 1,000 randomly selected United Kingdom households and that 640 of these households spent money to buy life insurance in 1993.
a. If p denotes the proportion of all U.K. households that spent money to buy life insurance in 1993, set up the null and alternative hypotheses needed to attempt to justify the claim that more than 60 percent of U.K. households spent money to buy life insurance in 1993.
b. Test the hypotheses you set up in part a by setting α = .10, .05, .01, and .001. How much evidence is there that more than 60 percent of U.K. households spent money to buy life insurance in 1993?