Question

a retired statistician was interested in determining the average cost of a 200000 term life insurance policy for a he randomly sampled 65 subjects what value of alpha was used to create this confidence interval

Answer 1

The correct option is the second option

Explanation:

From the question we are told that

The average cost is
`\mu = \$ 200 000.00`

The sample size is n = 65

The upper limit of the 95% confidence interval is $1050.00

The lower limit of the 95% confidence interval is $850.00

From the question we are told the confidence level is 95% , hence the level of significance is

`\alpha = (100 - 95 ) \%`

=>
`\alpha = 0.05`