Xr12-127 Most life-insurance companies are leery about offering policies to people 64 and older.

When they do, the premiums must be high enough to overcome the predicted length of life.

The president of one life-insurance company was thinking about offering special discounts to Americans 64 and older who held full-time jobs.

The plan was based on the belief that full-time workers of this age group are likely to be in good health and would likely live well into their 80s. To help decide what to do, he organized a survey of a random sample of the 38 million American adults age 64 and older (Statistical Abstract of the United States, 2009, Table 18). He asked a random sample of 325 of these Americans whether they currently hold a full-time job (1  No, 2  Yes).

a. Estimate with 95% confidence the size of this market segment.

b. Write a report to the executives of an insurance company detailing your statistical analysis.