The Independent Insurance Agents of America conducted a survey of insurance consumers and discovered that 48% of them always reread their insurance policies, 29% sometimes do, 16% rarely do, and 7% never do. Suppose a large insurance company invests considerable time and money in rewriting policies so that they will be more attractive and easy to read and understand. After using the new policies for a year, company managers want to determine whether rewriting the policies significantly changed the proportion of policyholders who always reread their insurance policy. They contact 380 of the company’s insurance consumers who purchased a policy in the past year and ask them whether they always reread their insurance policies. One hundred and sixty-four respond that they do. Use a 1% level of significance to test the hypothesis.
Answer to relevant QuestionsA study by Hewitt Associates showed that 79% of companies offer employees flexible scheduling. Suppose a researcher believes that in accounting firms this figure is lower. The researcher randomly selects 415 accounting firms ...Test each of the following hypotheses by using the given information. Assume the populations are normally distributed.a. H0: σ2 = 20Ha: σ2 > 20α = .05, n = 15, s2 = 32b. H0: σ2 = 8.5Ha: σ2 ≠ 8.5α = .10, n = 22, ...Suppose a hypothesis states that the mean is exactly 50. If a random sample of 35 items is taken to test this hypothesis, what is the value of β if the population standard deviation is 7 and the alternative mean is 53? Use ...Solve for the value of beta in each of the following problems.a. H0:µ = 130Ha: µ > 130 n = 75σ = 12α = .01.The alternative mean is actually 135.b. H0:µ = .44 Ha: p < .44n = 1095α = .05.The alternative proportion is ...Suppose the number of beds filled per day in a medium-sized hospital is normally distributed. A hospital administrator tells the board of directors that, on the average, at least 185 beds are filled on any given day. One of ...
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