Final answer:
Steroids, specifically cholesterol, are the type of lipids that serve as precursors for the production of sex hormones such as testosterone and estradiol.
Step-by-step explanation:
The type of lipid that serves as the precursor for the production of sex hormones is steroids. Specifically, cholesterol is the most common steroid and serves as the precursor to important steroid hormones such as testosterone and estradiol, which are essential for reproductive functions. These hormones are synthesized by the gonads and endocrine glands and play a crucial role in the body's endocrine system. Cholesterol is not only crucial for the production of sex hormones but also serves other vital functions such as the production of bile salts and Vitamin D, and it is a component of the plasma membrane of animal cells.