Most life insurance companies are leery about offering policies to people over 64. When they do the premiums must be high enough to overcome the predicted length of life. The president of one life insurance company was thinking about offering special discounts to Americans over 64 who held full-time jobs. The plan was based on the belief that full-time workers over 64 are likely to be in good health and would likely live well into their eighties. To help decide what to do, he organized a survey of a random sample of the 40,268,000 American adults over 64. He asked a random sample of 325 Americans over 64 whether they currently hold a full-time job (1 = No and 2 = Yes).
a. Estimate with 95% confidence the size of this market segment.
b. Write a report to the executives of an insurance company detailing your statistical analysis.

  • CreatedFebruary 03, 2015
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