A retired statistician was interested in determining the average cost of a $200,000.00 term life insurance policy for a 60-year-old male non-smoker. He randomly sampled 65 subjects
(60-year-old male non-smokers)and constructed the following 95 percent confidence interval for
The mean cost of the term life insurance: ($850.00, $1050.00). What value of alpha was used to
Create this confidence interval?
A)0.10
B)0.025
C)0.05
D)0.01

Question

Quizplus · Accepted Answer

The confidence level is 95%, which means that alpha (α) is 1 - 0.95 = 0.05. This is because alpha represents the probability of type I error, or the complement of the confidence level.

A Retired Statistician Was Interested in Determining the Average Cost