Consider the Following to Answer the Question(s) Below

question 35

Essay

Consider the following to answer the question(s) below:
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Last year the average life expectancy of all policyholders was 77 years. ABI Insurance wants to determine if their clients now have a longer life expectancy, on average, so they randomly sample some of their recently paid policies. The insurance company will only change their premium structure if there is evidence that people who buy their policies are living longer than before. The sample has a mean of 78.6 years and a standard deviation of 4.48 years.

-In this context, describe the Type I error possible. How might such an error impact ABI Insurance?

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Definitions:

Ingratiation

A psychological tactic involving the use of flattery or other forms of manipulation to make oneself more likable or acceptable to another.

Unimportant Assignments

These are tasks or projects deemed to have little value or priority in the context of broader goals or objectives.

Strong Performer

An individual or entity that consistently achieves or exceeds performance expectations in a given area.

Fundamental Attribution Error

A bias in social psychology where people tend to attribute others' actions to their character or personality, while attributing their own behaviors to external factors.