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

question 10

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 critical value used in constructing a 90% confidence interval is
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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded, typically downward sloping.

Widgets

A hypothetical or generic manufactured good often used in economic models and discussions.

Demand Elastic

The degree to which the demand for a product or service varies with its price. High elasticity indicates demand changes significantly with price changes.

Price Elasticity of Demand

An indicator of the sensitivity of the demand for a product to variations in its price.