Jennifer and Chad Have a Homeowner's Policy with Contents Replacement-Cost

question 122

Multiple Choice

Jennifer and Chad have a homeowner's policy with contents replacement-cost coverage for personal property up to 50 percent of the insurance on their home.What will the insurance company pay for their stolen property under the following situation?
Insured value of house
$90,000
Deductible
$500
Actual cash value of stolen property
$20,000
Replacement value of stolen property
$35,000
​

• A) ​$19,500
• B) ​$34,500
• C) ​$35,000
• D) ​$44,500

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Definitions:

Research Hypothesis

A research hypothesis is a specific, testable prediction about the expected outcome of a study based on theoretical concepts or prior evidence.

Alpha Level

The threshold of probability set for rejecting the null hypothesis in a statistical test, often set at 0.05, indicating a 5% risk of concluding a difference exists when there is none.

Two-tailed Test

A statistical test used to determine if there is a significant difference between two groups in either direction.

Statistically Significant

A term indicating that the observed result in a study is unlikely to have occurred due to chance alone, often determined by a p-value less than a predetermined threshold.