A Tornado Causes the Garage to Collapse on Mr

question 59

Multiple Choice

A tornado causes the garage to collapse on Mr. Woody's car, and the damage to the car is $5,000. Mr. Woody has a PAP with both Collision and Other than Collision coverages. A $200 deductible applies to the Collision coverage. There is a $0 deductible on Other than Collision coverage. How much is paid by the PAP for the tornado damage?

• A) $0
• B) $4,000
• C) $4,800
• D) $5,000

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Definitions:

Level Of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a threshold for determining the statistical significance of a result.

P-Value

The p-value is a measure in statistics that helps determine the significance of results from a hypothesis test, indicating the probability of observing the results given that the null hypothesis is true.

Level Of Significance

A threshold or criterion for judging whether a statistical result is significant, commonly set at values like 0.05 or 0.01, indicating the risk of a Type I error.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, tested against to determine the likelihood of the alternative hypothesis.