A Retired Statistician Was Interested in Determining the Average Cost

question 113

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) . State the appropriate interpretation for this confidence interval. Note that all answers begin with "We are 95 percent confidence that…"

• A) The term life insurance cost of the retired statistician's insurance policy falls between $850.00 and $1050.00
• B) The term life insurance cost for all 60-year-old male non-smokers' insurance policies falls between $850.00 and $1050.00
• C) The average term life insurance cost for sampled 65 subjects falls between $850.00 and $1050.00
• D) The average term life insurance costs for all 60-year-old male non-smokers falls between $850.00 and $1050.00

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Definitions:

Composite Materials

Materials made from two or more constituent materials with significantly different physical or chemical properties, combined to create a material with characteristics different from the individual components.

Carbon And Glass Fibres

Strong, lightweight materials used in composites for a variety of applications, including automotive parts, sporting goods, and aerospace components.

Depletion Time

The amount of time it takes to fully use up a particular natural resource at the current rate of consumption.

Recycling Measures

Actions and processes dedicated to collecting, processing, and converting waste materials into new products, reducing the need for raw materials and minimizing waste.