Answer Happy

Question 2 20 pts Over the past decade, an insurance company has had a mix of 40% whole life policies, 25% universal life policies, 25% annual renewable-term (ART) policies, and 10% other types of policies. A change in this mix over the long haul could require a change in the commission structure, reserves, and possibly investments. A random sample of 850 policies issued over the past few months gave the results shown below. Number Category Whole life Universal life 376 206 199 ART Other 69 Total 850 Is there sufficient evidence, at the 5% level of significance, that the distribution of policy types has shifted from the historical percentages? Report your solution in the space below. Be sure to address all points for a hypothesis test.

Hypothesis Test Requirements For all questions involving a hypothesis test, be sure to include all the required steps: 1. State the null (H) and alternative (H or HA) hypotheses and identify the claim 2. Using the sample data, compute the test statistic. 3. Using the level of significance, calculate the critical value 4. Compute the p value. 5. Using the test statistic and critical, make a decision: Reject He or Fail to reject Ho- Using the p value and level of significance, make a decision: Reject Ho or Fail to reject Ho 6. Interpret the results in the context of the original problem Decision: Reject Ho Decision: Fail to reject Ho There is sufficient evidence to warrant There is not sufficient evidence to Claim: rejection of the claim that. (original warrant rejection of the claim that. Н. claim)" (original claim). There is not sufficient sample evidence Claim: "The sample data support the claim that to support the claim that. (original HO (original claim). claim).