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