Suppose a large insurance company wants to estimate the difference between the average amount of term life insurance purchased per family and the average amount of whole life insurance purchased per family. To obtain an estimate, one of the company’s actuaries randomly selects 27 families who have term life insurance only and 29 families who have whole life policies only. Each sample is taken from families in which the leading provider is younger than 45 years of age. Use the data obtained to construct a 95% confi dence interval to estimate the difference in means for these two groups. Assume the amount of insurance is normally distributed.

According to an extensive survey conducted for  Marketing by Leo J. Shapiro & Associates, 66% of all computer companies are going to spend more on marketing this year than in previous years. Only 33% of other information technology companies and 28% of non-information technology companies are going to spend more. Suppose a researcher wanted to conduct a survey of her own to test the claim that 28% of all non-information technology companies are spending more on marketing next year than this year. She randomly selects 270 companies and determines that 62 of the companies do plan to spend more on marketing next year. Use 0.05, the chi-square goodness-of-fit test, and the sample data to test to determine whether the 28% figure holds for all non-information technology companies.