SCENARIO 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 Scenario 8-3, it is possible that the confidence interval obtained
will not contain the mean score for all actuarial students in the special study program.

Question

Quizplus · Accepted Answer

A confidence interval provides a range of values within which the true population mean is likely to fall, but it does not guarantee that the interval will contain the true mean. There is always a chance, equal to the complement of the confidence level (in this case, 10%), that the interval does not contain the true mean.

SCENARIO 8-3 to Become an Actuary, It Is Necessary to Pass a Pass