The Next Questions Are Based on the Following Information

question 84

Multiple Choice

The Next Questions Are Based On The Following Information:
The state lottery office claims that the average household income of those people playing the lottery is at least $37,000.Assume that the distribution of household income of those people playing the lottery is normally distributed with a standard deviation of $5,756.Suppose that for a sample of 25 households,it is found that the average income was $36,243.
-What is the most accurate estimate of the p-value?

• A)p-value > 0.10
• B)0.01 < p-value < 0.05
• C)0.05 < p-value < 0.10
• D)p-value < 0.01

Describe mechanisms that insurance companies use to mitigate adverse selection.

Calculate expected wealth and loss under different insurance policy scenarios.

Evaluate the impact of risk behavior on insurance decisions and premiums.

Distinguish between high risk and low risk clients and their treatment in the insurance market.

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Definitions:

Descriptive Writing

A style of writing that provides detailed descriptions of people, places, objects, or events to allow the reader to visualize them.

Form Messages

Form Messages are pre-written responses or texts used in communication to save time and ensure consistency, often used in customer service.

Favor Requests

Asking for assistance or a service that is voluntarily provided without expecting anything in return.

Enthusiastic Sound

A tone or quality of voice that conveys excitement, eagerness, and positive energy.