TABLE 8-3
To become an actuary,it is necessary to pass a series of 10 exams,including the most important one,an exam in probability and statistics.An insurance company wants to estimate the mean score on this exam for actuarial students who have enrolled in a special study program.They take a sample of 8 actuarial students in this program and determine that their scores are: 2,5,8,8,7,6,5,and 7.This sample will be used to calculate a 90% confidence interval for the mean score for actuarial students in the special study program.
-True or False: Referring to Table 8-3,for the confidence interval to be valid,it is necessary that test scores of students in the special study program on the actuarial exam be normally distributed.

Question

Quizplus · Accepted Answer

According to Table 8-3, for a confidence interval to be valid, the sample size should be sufficiently large (at least 30) or the population should be normally distributed. Therefore, in this case, the assumption of normality holds true and is necessary for the confidence interval to be valid.

TABLE 8-3 To Become an Actuary,it Is Necessary to Pass a Series