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Identify the Type of Test

Question 2

Multiple Choice

Identify the type of test.
-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 some of their recently paid policies.
The insurance company will only change their premium structure if there is evidence that
People who buy their policies are living longer than before. Which of the following
Statement is true about this hypothesis test?


A) It is a two tailed test about a proportion.
B) It is a one tailed test about a mean.
C) It is a one tailed test about a proportion.
D) It is a two tailed test about a mean.
E) None of the above.

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