Life Insurance Narrative
an Insurance Company Wants to Test the Hypothesis

Essay

Life Insurance Narrative
An insurance company wants to test the hypothesis that the mean amount of life insurance held by professional men equals that held by professional women. Accordingly, two independent simple random samples are taken from appropriate professional listings of men and women. The sample of 200 men reveals a mean amount of $140,000 with a standard deviation of $26,000. The sample of 400 women shows a mean amount of $128,000 with a standard deviation of $3,000.
-The proportion of defective computers built by Byte Computer Corporation is 0.15. In an attempt to lower the defective rate, the owner ordered some changes made in the assembly process. After the changes were put into effect, a random sample of 42 computers was tested, revealing a total of 4 defective computers. Perform the appropriate test of hypothesis to determine whether the proportion of defective computer has been lowered. Use $\alpha$ = 0.01.