A manager for an insurance company believes that customers h

A manager for an insurance company believes that customers have the following preferences for life insurance products: 30% prefer Whole Life, 20% prefer Universal Life, and 50% prefer Life Annuities. The results of a survey of 230 customers were tabulated. Is it possible refute the sales manager\'s claimed proportions of customers who prefer each product using the data? Step 1 of 10: State the null and alternative hypothesis. H0 : Preferences for life insurance products are as per the manager\'s belief. Ha: Preferences for life insurance products are not as per the manager\'s belief H0: Preferences for life insurance products are not as per the manager\'s belief. Ha: Preferences for life insurance products are as per the manager\'s belief.

Solution

Null hypothesis always includes equality sign. So, it includes the claim that the preference for life insurance products are as per manager\'s belief.

Alternate: preference for life insurance products are not as per manager\'s belief.

Answer:

H0 : Preferences for life insurance products are as per the manager\'s belief.

Ha: Preferences for life insurance products are not as per the manager\'s belief.

(First option)