A Retired Statistician Was Interested in Determining the Average Cost

question 27

Multiple Choice

A retired statistician was interested in determining the average cost of a $200,000.00 term life insurance policy for a 60-year-old male non-smoker. He randomly sampled 65 subjects
(60-year-old male non-smokers) and constructed the following 95 percent confidence interval for the mean cost of the term life insurance: ($850.00, $1050.00) . Explain what the phrase "95 percent confident" means in this situation.

• A) 95 percent of all the life insurance costs will fall within the specified interval.
• B) In repeated sampling, 95 percent of the intervals constructed would contain the value of the true population mean.
• C) 95 percent of all retired statisticians are underinsured.
• D) In repeated sampling, the mean of the population will fall within the specified intervals 95 percent of the time.

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Definitions:

Conflict Theory

A sociological perspective that views social life as a competition, and focuses on the distribution of resources, power, and inequality as causes of conflict and social change.

Functionalism

A theoretical framework in sociology that emphasizes the interdependence of the parts of a society and their role in maintaining societal stability.

Absolute Poverty

A condition characterized by the severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information.

Relative Poverty

A condition where people are considered poor relative to the living standards of the majority in the society they live in.