Assignment:
The American Council of Life Insurance lists the following breakdown of ordinary life insurance policies purchased in the United States during the most recent reporting year. If a random sample of the ordinary life insurance policies from a given state were to result in the table of observed frequencies shown in the rightmost column, could we conclude that the amounts for ordinary life insurance policies sold within that state have the same distribution as policies on the national level? Use the 0.05 level of significance in reaching a conclusion.
|
Size of Policy
|
National level Percentage of Policies
|
State Sample Number of Policies
|
|
under $10,000
|
9%
|
34
|
|
$10.000-$14,999
|
9
|
39
|
|
$15,000-$24,999
|
7
|
17
|
|
$25,000-$49,999
|
13
|
38
|
|
$50,000-$99,000
|
19
|
56
|
|
$100,000-$500,000
|
40
|
105
|
|
over $500,000
|
3
|
11
|
|
|
100%
|
300
|
Provide complete and step by step solution for the question and show calculations and use formulas.