TABLE 8-3 To Become an Actuary,it Is Necessary to Pass a Series

question 51

True/False

TABLE 8-3
To become an actuary,it is necessary to pass a series of 10 exams,including the most important one,an exam in probability and statistics.An insurance company wants to estimate the mean score on this exam for actuarial students who have enrolled in a special study program.They take a sample of 8 actuarial students in this program and determine that their scores are: 2,5,8,8,7,6,5,and 7.This sample will be used to calculate a 90% confidence interval for the mean score for actuarial students in the special study program.
-True or False: Referring to Table 8-3,it is possible that the confidence interval obtained will not contain the mean score for all actuarial students in the special study program.

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Definitions:

T Value

A measure derived in a t-test that shows the size of the difference relative to the variation in your sample data.

T Test

A statistical hypothesis test used to determine if there is a significant difference between the means of two variables.

Two Groups

A basic experimental design involving comparison between two distinct or independent sets of subjects or conditions to determine differences or effects.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.