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:

Bloomer Fashion

A 19th-century women's clothing movement that advocated for practical and less restrictive garments, named after Amelia Bloomer.

Men's Reaction

Generally refers to the male response or behavior towards particular social, political, or cultural changes or events.

Dangerously Provocative

Refers to actions or forms of speech that are likely to provoke or incite controversy, violence, or unrest.

Militant Tactics

Strategies or actions that are aggressive, confrontational, or combative, often used in protests or movements aiming to bring about change.