Health insurers are beginning to offer telemedicine services online that replace the common office visit. Wellpoint provides a video service that allows subscribers to connect with a physician online and receive prescribed treatmentsWellpoint claims that users of its LiveHealth Online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 20 online doctor visits, are consistent with the savings per visit reported byWellpoint.9210554759279523583494672908039389674100Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings for a televisit to the doctor as opposed to an office visit (to 2 decimals)95% confidence interval: $to $per visit

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Asked Apr 16, 2019
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Health insurers are beginning to offer telemedicine services online that replace the common office visit. Wellpoint provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments
Wellpoint claims that users of its LiveHealth Online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 20 online doctor visits, are consistent with the savings per visit reported by
Wellpoint.
92
105
54
75
92
79
52
35
83
49
46
72
90
80
39
38
96
74
100
Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings for a televisit to the doctor as opposed to an office visit (to 2 decimals)
95% confidence interval: $
to $
per visit
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Health insurers are beginning to offer telemedicine services online that replace the common office visit. Wellpoint provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments Wellpoint claims that users of its LiveHealth Online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 20 online doctor visits, are consistent with the savings per visit reported by Wellpoint. 92 105 54 75 92 79 52 35 83 49 46 72 90 80 39 38 96 74 100 Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings for a televisit to the doctor as opposed to an office visit (to 2 decimals) 95% confidence interval: $ to $ per visit

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Expert Answer

Step 1

Here, the sample size is 20 that is reasonably small. The population standard deviation is unknown here. Therefore, z-test cannot be used here. In this situation student’s t-distribution can be used.

Let µ be the true mean savings for a visit to the doctor.

Let x bar be the sample mean savings for a visit to the doctor. s be the sample standard deviation. n is the sample size.

The 100(1-α)% confidence interval of µ is,

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Step 2

Here the confidence interval is 95%.

Therefore, α = 0.05.

The degrees of freedom, n - 1 = 20 - 1 =19,

From the EXCEL, using the formula, “=T.INV.2T(0.05,19)”, the critical value is 2.093...

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