A consumer advocacy group wants to test the difference between the average amount of Term life insurance and the average amount of Whole life insurance purchased by families. A sample of 27 randomly selected families who have Term life insurance only and 29 randomly selected families who have Whole life insurance only yielded the following statistics:
Term life insurance: Average = 105000, Standard deviation = 32000
Whole life insurance: Average = 85000, Standard deviation = 25500
Is there evidence at the 5% level of a difference between the two group means (variances are assumed equal and can be verified with a test)?
