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20. Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. The insurance company knows that, last year, the

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20. Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. The insurance company knows that, last year, the life expectancy of its policyholders was 77 years. They want to know if their clients this year have a longer life expectancy, on average, so the company randomly samples some of the recently paid policies to see if the mean life expectancy of policyholders has increased. The insurance company will only change their premium structure if there is evidence that people who buy their policies are 86 living longer than before. (x = 78.6, s = 4.477,n = 20) Which test of significance should be run? 75 83 184 81 77 78 79 79 81 76 85 70 76 79 81 73 74 72 83 A. 1 Proportion Z-Test B. 2 Proportion Z -Test C. 1 Sample T-Test D. 2 Sample T-test E. Matched Pair T-Test 21. Would being part of a support group that meets regularly help people who are wearing the nicotine patch actually quit smoking? A county health department tries an experiment using several hundred volunteers who were planning to use the patch to help them quit smoking. (You could have students suggest an experimental design - a nice review!) The subjects were randomly divided into two groups. People in Group 1 were given the patch and attended a weekly discussion meeting with counselors and others trying to quit. People in Group 2 also used the patch but did not participate in the counseling groups. After six months 46 of the 143 smokers in Group 1 and 30 of 151 smokers in Group 2 had successfully stopped smoking. Do these results suggest that such support groups could be an effective way to help people stop smoking? Which test of significance should be run? A. 1 Proportion Z-Test B. 2 Proportion Z -Test C. 1 Sample T-Test D. 2 Sample T-test E. Matched Pair T-Test 22. Do consumers spend more on a trip to Walmart or Target? Suppose researchers interested in this question collected a systematic sample from 85 Walmart customers and 80 Target customers by asking customers for their purchase amount as they left the stores to determine if there was a difference in the mean amount purchased. The data collected are summarized in the table below. A. 1 Proportion Z-Test Walmart B. 2 Proportion Z -Test Target C. 1 Sample T-Test N 85 80 D. 2 Sample T-test 45 53 E. Matched Pair T-Test S 21 19 also have 3-4 "Free Response-type quest

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