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:

Self-Focused Thinking

A cognitive process where an individual's thoughts center on themselves, particularly on one's own feelings, behaviors, and attributes.

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Unfavorable or harmful results arising from actions, processes, or situations.

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