TABLE 8-3 to Become an Actuary, It Is Necessary to Pass a Pass

question 102

Short Answer

TABLE 8-3
To become an actuary, it is necessary to pass a series of 10 exams, including the most important one, an exam in probability and statistics. An insurance company wants to estimate the mean score on this exam for actuarial students who have enrolled in a special study program. They take a sample of 8 actuarial students in this program and determine that their scores are: 2, 5, 8, 8, 7, 6, 5, and 7. This sample will be used to calculate a 90% confidence interval for the mean score for actuarial students in the special study program.
-Referring to Table 8-3, the confidence interval will be based on ________ degrees of freedom.

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Definitions:

Nominal Wage

The amount of money received by a worker per unit of time (hour, day, etc.); money wage.

Price Level

A measure of the average prices of goods and services in an economy, often used to evaluate inflation or deflation over time.

Real Wage

The amount of goods and services a worker can purchase with his or her nominal wage; the purchasing power of the nominal wage.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.