Your hospital is negotiating with medical insurance providers, who would like to reduce the amount they pay as reimbursement for hospital stays. For a particular procedure, they would like to reduce payment by $300 and have patients go home one day earlier. To see what effect this would have on hospital costs, a random sample of 50 patients who were recently admitted for this procedure was analyzed. Had they left one day earlier, the average hospital cost would have been $322.44 less, and the standard deviation was found to be $21.71. Construct a 95% confidence interval for the mean net savings for the hospital, per patient, for the larger population of recent patients.
Your hospital is negotiating with medical insurance providers, who would like to reduce the amount they pay as reimbursement for hospital stays. For a particular procedure, they would like to reduce payment by $300 and have patients go home one day earlier. To see what effect this would have on hospital costs, a random sample of 50 patients who were recently admitted for this procedure was analyzed. Had they left one day earlier, the average hospital cost would have been $322.44 less, and the standard deviation was found to be $21.71. Construct a 95% confidence interval for the mean net savings for the hospital, per patient, for the larger population of recent patients.
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