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

question 11

Short Answer

SCENARIO 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.
-Referring to Scenario 8-3,the confidence interval will be based on _____degrees of freedom.

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Definitions:

Capital Intensity Ratio

A financial metric indicating the amount of capital needed per unit of revenue, typically used to assess the business model's reliance on physical capital.

Total Assets

Represents the sum of everything of value owned by a company, including cash, investments, property, and equipment.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Fixed Asset Account

A financial account that tracks the cost and depreciation of assets a company uses over a long period.