TABLE 8-4
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.
-Referring to Table 8-4, if we use the same sample information to obtain a 95% confidence interval, the resulting interval would be narrower than the one obtained here with 90% confidence.

Question

Quizplus · Accepted Answer

A 95% confidence interval is wider than a 90% confidence interval because it reflects a higher level of certainty, requiring a larger range to ensure the true mean is captured within the interval.

TABLE 8-4 to Become an Actuary, It Is Necessary to Pass a Pass