Consider the Following to Answer the Question(s) Below

question 29

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 II error possible. How might such an error impact ABI Insurance?

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Definitions:

Personal Assumptions

The presuppositions or beliefs one holds as true without empirical evidence, often influencing how they interpret situations and make decisions.

Position Power

The authority and influence a person possesses within an organization due to the rank or role they hold.

Influence Tactics

Strategies or actions designed to change the attitude or behavior of others in a particular direction.

Communication Policy

Guidelines and practices that govern how communication is conducted within an organization, including methods, privacy, and protocols.