Donna,who Is Single and 30-Years-Old,has Received Several Speeding Tickets Recently

question 141

Multiple Choice

Donna,who is single and 30-years-old,has received several speeding tickets recently and was shocked by the effect on her auto insurance.Donna drives a 2002 Pontiac Firebird,is currently not covered by health insurance,has an emergency fund of $25,000,an income of $100,000 per year,and an investment portfolio of $230,000.She is trying to reduce the price of her auto insurance.Which of the following actions is most likely to be advisable.

• A) lower her liability limits to the minimum allowed in her state
• B) drop her medical payments coverage
• C) raise her deductible from $250 to $1,000
• D) drop her comprehensive coverage and keep collision-only
• E) drop everything from her policy except the liability insurance

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Definitions:

Type II Error

The error that occurs when a statistical test fails to reject a false null hypothesis, mistakenly indicating that there is no effect or difference when there is.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive."

Type II Error

Occurs when a statistical test fails to reject a false null hypothesis, also known as a false negative.

Null Hypothesis

A hypothesis that states there is no statistical significance between the two variables in the hypothesis. It posits no effect or no difference as a default stance to be tested against.