The Net Single Premium for a Life Insurance Policy Is

question 11

Multiple Choice

The net single premium for a life insurance policy is

• A)the premium the insurer charges to cover the death benefit and the insurer's expenses.
• B)the future value of the future death benefit.
• C)the present value of the future death benefit.
• D)the face value of the policy discounted back for the number of year the policy will be in force.

---

Definitions:

Rejecting

In statistical hypothesis testing, the act of concluding that there is enough evidence to discard the null hypothesis in favor of the alternative hypothesis.

T-Test Statistic

A type of inferential statistic used to determine if there is a significant difference between the means of two groups, which may be related in certain features.

Formula

A concise way of expressing information symbolically, as in a mathematical or chemical formula, representing a relationship between variables.

One-Sample Tests

Statistical tests used to compare the mean of a sample to a known value or standard, in order to assess if the sample comes from a population with that specific mean.