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

question 178

True/False

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,if we use the same sample information to obtain a 95% confidence interval,the resulting interval would be narrower than the one obtained here with 90% confidence.

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Definitions:

Marginal Benefit

The extra advantage or happiness derived from the use of one more unit of a good or service.

Consumption

The use of goods and services by households or individuals, contributing to their utility and the overall demand in an economy.

Personal Bankruptcies

Legal processes in which individuals declare inability to pay back their debts, leading to potential asset liquidation or restructuring.

Uninsured Workers

Workers who do not have insurance coverage, particularly health insurance, provided by their employer or have not purchased it privately.