Calculate the Appropriate Test Statistic

Multiple Choice

Calculate the appropriate test statistic.
-Insurance companies track life expectancy information to assist in determining the
Cost of life insurance policies. Last year the average life expectancy of all policyholders
Was 77 years. ABI Insurance wants to determine if their clients now have a longer life
Expectancy, on average, so they randomly sample 20 of their recently paid policies.
The sample has a mean of 78.6 years and a standard deviation of 4.48 years. What is the
Value of the test statistic?

A) 1.896
B) 2.355
C) 1.987
D) 2.176
E) 1.597