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The latest available data showed health expenditures were $8086 per person in the United States or 17.6% of gross domestic product (Centers for Medicare & Medicaid Services website, April 1, 2012). Use $8086 as the population mean and suppose a survey research firm will take a sample of 100 people to investigate the nature of their health expenditures. Assume the population standard deviation is $2500. a. Show the sampling distribution of the mean amount of health care expenditures for a sample of 100 people. b. What is the probability the sample mean will be within ±$200 of the population mean? c. What is the probability the sample mean will be greater than $9000? If the survey research firm reports a sample mean greater than $9000, would you question whether the firm followed correct sampling procedures? Why or why not?

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STATISTICS F/BUSINESS+ECONOMICS-TE...

13th Edition
Anderson
Publisher: CENGAGE L
ISBN: 9781305881884
BuyFind

STATISTICS F/BUSINESS+ECONOMICS-TE...

13th Edition
Anderson
Publisher: CENGAGE L
ISBN: 9781305881884

Solutions

Chapter
Section
Chapter 7, Problem 43SE
Textbook Problem

The latest available data showed health expenditures were $8086 per person in the United States or 17.6% of gross domestic product (Centers for Medicare & Medicaid Services website, April 1, 2012). Use $8086 as the population mean and suppose a survey research firm will take a sample of 100 people to investigate the nature of their health expenditures. Assume the population standard deviation is $2500.

  1. a. Show the sampling distribution of the mean amount of health care expenditures for a sample of 100 people.
  2. b. What is the probability the sample mean will be within ±$200 of the population mean?
  3. c. What is the probability the sample mean will be greater than $9000? If the survey research firm reports a sample mean greater than $9000, would you question whether the firm followed correct sampling procedures? Why or why not?

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Chapter 7 Solutions

STATISTICS F/BUSINESS+ECONOMICS-TEXT
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