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:

Tutor Wages

The remuneration or salary paid to individuals providing educational support and instruction.

Biased Tutoring Centers

Educational facilities that may favor certain methodologies, ideologies, or student demographics over others, potentially influencing the delivery and reception of tutoring.

Strongly Prefer

An intense or significant inclination for one option or item over others, often based on comparisons of utility or satisfaction.

Labor-Market Discrimination

Unfair treatment of workers based on gender, race, age, or other characteristics unrelated to their job performance.