Answer:
A. T > 2.539
Step-by-step explanation:
We have a hypothesis test of the mean, with unknown population standard deviation.
The hypothesis are:
From the hypothesis we can see that the test is right-tailed, so the critical value of t should be a positive value.
The degrees of freedom can be calculated as:
The significance level is 0.01, so the critical value tc should be the one that satisfies:
Looking up in a t-table, for 19 degrees of freedom, this critical value is tc=2.539.
Answer:
Expected Value = -$42 (loss of 42 dollars)
Step-by-step explanation:
Complete Question Below:
<em>"There is a 0.9986 probability that a randomly selected 33-year-old male lives through the year. A life insurance company charges $182 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110 comma 000 as a death benefit. If a 33-year-old male purchases the policy, what is his expected value?"</em>
<em />
We can say P(survival) = 0.9986 and thus P(not survival) = 1 - P(survival) = 1-0.9986 = 0.0014
Also,
In case 33 year old doesn't live, the payment would be 100,000 - 182 = $99,818
And
In case 33 year old lives, the payment is
-$182
We know, the <em>expected value is the sum of the product of each possibility with its probability.</em>
This means a loss of $42 (or -$42)