A Retired Statistician Was Interested in Determining the Average Cost

question 47

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 ʺWe are 95 percent confidence that…ʺ

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

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Definitions:

Mitral Valve

A valve in the heart located between the left atrium and left ventricle that allows blood to flow in one direction from the atrium to the ventricle.

Aorta

The largest artery in the body, which carries oxygenated blood from the heart to the rest of the body.

Tricuspid Valve

A valve in the heart that lies between the right atrium and the right ventricle, preventing backflow of blood from the ventricle to the atrium.

Trabeculae Carneae

Muscular ridges on the internal surface of the heart's ventricles.