Gary Cashed in an Insurance Policy on His Life

question 109

True/False

Gary cashed in an insurance policy on his life.He needed the funds to pay for his terminally ill wife's medical expenses.He had paid $15,000 in premiums and he collected $30,000 from the insurance company.Gary is required to include the gain of $15,000 ($30,000 - $15,000)in gross income.

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Definitions:

Population Mean

The average of all values in a complete population, representing a central value of a dataset.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the value of an unknown population parameter at a certain confidence level.

Population Standard Deviation

A measure of the dispersion or variability of a set of data points in a population.

Sample Size

The number of observations or elements selected from a population for the purpose of statistical analysis.