Question

A manager for an insurance company believes that customers have the following preferences for life insurance products: 20% prefer Whole Life, 10% prefer Universal Life, and 70% prefer Life Annuities. The results of a survey of 200 customers were tabulated. Is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data

Answer 1

Yes the sales manager claims can be refuted based on the calculated percentages

Explanation:

From the table attached below

Total number of customers = 200

Calculated percentages

customers that prefer whole life insurance = 90 = 90/200 = 45%

customers that prefer universal life insurance = 15 = 15/200 = 7.5%

customers that prefer Annuities = 95 = 95/200 = 47.5

Expected percentages:

whole life = 20%

Universal life = 10%

Life Annuities = 70%