Suppose that we wish to assess whether more than 60 percent of all United Kingdom households spent on life insurance in 1993. That is, we wish to assess whether the proportion, p, of all United Kingdom households that spent on life insurance in 1993 exceeds .60. Assume here that the U.K. insurance survey is based on 1.000 randomly selected households and that 640 of these households spent on life insurance in 1993.
a. Assuming that p equals .60 and the sample size is 1.000. what is the probability of observing a sample proportion that is at least .64?
b. Based on your answer in part a, do you think more than 60 percent of all United Kingdom households spent on life insurance in 1993? Explain.