A Retired Statistician Was Interested in Determining the Average Cost

question 34

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) . Explain what the phrase ʺ95 percent
Confidentʺ means in this situation.

• A)95 percent of all retired statisticians are underinsured.
• B)95 percent of all the life insurance costs will fall within the specified interval.
• C)In repeated sampling, the mean of the population will fall within the specified intervals 95 percent of the time.
• D)In repeated sampling, 95 percent of the intervals constructed would contain the value of the true population mean.

Understand the legal principle of disaffirmance by minors in contracts.

Grasp the impact of mental incapacity on the validity of contracts.

Comprehend the enforceability of covenants not to compete and exculpatory clauses.

Identify the circumstances under which contracts can be considered unconscionable or void/voidable.

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Definitions:

Cognitive Ability

Cognitive ability refers to the capacity of an individual to perform various mental activities related to learning, thinking, reasoning, problem-solving, and decision-making.

Experiential Learning

A learning approach based on students actively engaging in experiences that enhance their knowledge and skills.

Cost Reduction

Strategies or actions taken by a company to decrease its expenses and improve profitability.

On-The-Job Training

A hands-on method of teaching the skills, knowledge, and competencies needed for employees to perform a specific job within the workplace.