A Retired Statistician Was Interested in Determining the Average Cost

question 57

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

Stoicism

An ancient philosophy emphasizing rationality and self-control, teaching that virtue is sufficient for happiness and one should not be controlled by the desire for pleasure or fear of pain.

Ethical Egoism

A moral philosophy that posits individuals should act in their own self-interest because it is the moral thing to do.

Analysis

The process of examining components or structures of a subject to understand its nature or to determine its essential features and their relations.

Hedonism

A philosophy that argues pleasure or happiness is the highest good and ultimate aim in life.