EBK MODERN BUSINESS STATISTICS WITH MIC
5th Edition
ISBN: 9780100475038
Author: williams
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 8, Problem 48SE
The Health Care Cost Institute tracks health care expenditures for beneficiaries under the age of 65 who are covered by employer-sponsored private health insurance (Health Care Cost Institute website, November 4, 2012). The data contained in the DATAfile named DrugCost are consistent with the institute’s findings concerning annual prescription costs per employee. Analyze the data using Excel and answer the following questions.
- a. Develop a 90% confidence interval for the annual cost of prescription drugs.
- b. Develop a 90% confidence interval for the amount of out-of-pocket expense per employee.
- c. What is your point estimate of the proportion of employees who incurred no prescription drug costs?
- d. Which, if either, of the confidence intervals in parts (a) and (b) has a larger margin of error. Why?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The Health Care Cost Institute tracks health care expenditures for beneficiaries under theage of 65 who are covered by employer-sponsored private health insurance (Health CareCost Institute website, November 4, 2012). The data contained in the DATAfile namedDrugCost are consistent with the institute’s findings concerning annual prescription costsper employee. Analyze the data using Excel and answer the following questions.a. Develop a 90% confidence interval for the annual cost of prescription drugs.b. Develop a 90% confidence interval for the amount of out-of-pocket expense peremployee.c. What is your point estimate of the proportion of employees who incurred no prescription drug costs?
In a situation where the sample size was decreased from 39 to 29 in a normally distributed data set, what would be the impact on the confidence interval?
The Health Care Cost Institute tracks health care expenditures for beneficiaries under the age of 65 who are covered by employ ersponsored private health insurance. The data contained in the file DrugCost are con sistent with the institute’s findings concerning annual prescription costs per employee. Analyze the data using Excel and answer the following questions. a. Develop a 90% confidence interval for the annual cost of prescription drugs. b. Develop a 90% confidence interval for the amount of outofpocket expense per employee c. What is your point estimate of the proportion of employees who incurred…
Chapter 8 Solutions
EBK MODERN BUSINESS STATISTICS WITH MIC
Ch. 8.1 - 1. A simple random sample of 40 items resulted in...Ch. 8.1 - 2. A simple random sample of 50 items from a...Ch. 8.1 - 3. A simple random sample of 60 items resulted in...Ch. 8.1 - 4. A 95% confidence interval for a population mean...Ch. 8.1 - 5. Data were collected on the amount spent by 64...Ch. 8.1 - Travel Taxes. In an attempt to assess total daily...Ch. 8.1 - Prob. 7ECh. 8.1 - 8. Studies show that massage therapy has a variety...Ch. 8.1 - AARP reported on a study conducted to learn how...Ch. 8.1 - 10. Costs are rising for all kinds of medical...
Ch. 8.2 - For a t distribution with 16 degrees of freedom,...Ch. 8.2 - Find the t value(s) for each of the following...Ch. 8.2 - The following sample data are from a normal...Ch. 8.2 - 14. A simple random sample with n = 54 provided a...Ch. 8.2 - Prob. 15ECh. 8.2 - Years to Bond Maturity. A sample containing years...Ch. 8.2 - Quality Ratings of Airports. The International Air...Ch. 8.2 - Unemployment in Older Workers. Older people often...Ch. 8.2 - Prob. 19ECh. 8.2 - Prob. 20ECh. 8.2 - Prob. 21ECh. 8.2 - Prob. 22ECh. 8.3 - 23. How large a sample should be selected to...Ch. 8.3 - Prob. 24ECh. 8.3 - Prob. 25ECh. 8.3 - Prob. 26ECh. 8.3 - Prob. 27ECh. 8.3 - Prob. 28ECh. 8.3 - 29. Customers arrive at a movie theater at the...Ch. 8.3 - Prob. 30ECh. 8.4 - 31. A simple random sample of 400 individuals...Ch. 8.4 - 32. A simple random sample of 800 elements...Ch. 8.4 - Prob. 33ECh. 8.4 - 34. At 95% confidence, how large a sample should...Ch. 8.4 - The Consumer Reports National Research Center...Ch. 8.4 - 36. According to statistics reported on CNBC, a...Ch. 8.4 - 37. One of the questions on a survey of 1000...Ch. 8.4 - According to Thomson Financial, through last...Ch. 8.4 - Prob. 39ECh. 8.4 - For many years businesses have struggled with the...Ch. 8.4 - 41. Fewer young people are driving. In 1983, 87%...Ch. 8.4 - Prob. 42ECh. 8.4 - Prob. 43ECh. 8 - 44. A sample survey of 54 discount brokers showed...Ch. 8 - 45. A survey conducted by the American Automobile...Ch. 8 - 46. The 92 million Americans of age 50 and over...Ch. 8 - Russia has recently started a push for stronger...Ch. 8 - 48. The Health Care Cost Institute tracks health...Ch. 8 - A recent article reported that there are...Ch. 8 - 50. Mileage tests are conducted for a particular...Ch. 8 - Prob. 51SECh. 8 - Prob. 52SECh. 8 - 53. The National Center for Education Statistics...Ch. 8 - Prob. 54SECh. 8 - 55. The Pew Research Center has conducted...Ch. 8 - 56. A survey of 750 likely voters in Ohio was...Ch. 8 - The 2003 Statistical Abstract of the United States...Ch. 8 - 58. A well-known bank credit card firm wishes to...Ch. 8 - Prob. 59SECh. 8 - Prob. 60SECh. 8 - case Problem 1 Young Professional Magazine
Young...Ch. 8 - Gulf Real Estate Properties
Gulf Real Estate...Ch. 8 - Metropolitan Research, Inc.
Metropolitan Research,...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- A research group studying cell phone habits asked the question “Do you ever use your cell phone to make a payment at a convenience store?” to people selected from two random samples of cell phone users. One sample consisted of older adults, ages 35 years and older, and the other sample consisted of younger adults, ages 18 years to 34 years. The proportion of people who answered yes in each sample was used to create a 95 percent confidence interval of (0.097,0.125)(0.097,0.125) to estimate the difference (younger minus older) between the population proportions of people who would answer yes to the question. Which of the following is the best description of what is meant by 95 percent confidence? In repeated random sampling with the same sample size, approximately 95% of the sample proportions from the younger group will be between 0.097 and 0.125 greater than the sample proportion from the older group. A In repeated random sampling with the same sample size,…arrow_forward2)The manager for a contractual ride-share company wants to construct a control chart for determining whether 10-drivers are under control with regard to the number of complaints filed. Accordingly, the manager sampled 100 reviews from last year for each driver, with the following results: Driver Number of Complaints 1 8 2 18 3 21 4 6 5 17 6 15 7 19 8 5 9 23 10…arrow_forwardUse the accompanying Grade Point Averages data to find 90%, 95%, and 99% confidence intervals for the mean GPA.arrow_forward
- The International Nanny Association (INA) reports that in a sample of 928 in- home child care providers (nannies), 128 have passed the INA Nanny Credential Exam (2014 International Nanny Association Salary and Benefits Survey). A. Use Wilson’s adjustment to find a 95% confidence interval for the true proportion of all nannies who have passed the INA certification exam. B. We want to decide whether the proportion of who passed the INA certification exam exceeds than .12 answer both a and b.arrow_forwardAn environmental science teacher at a high school with a large population of students wanted to estimate the proportion of students at the school who regularly recycle plastic bottles. The teacher selected a random sample of students at the school to survey. Each selected student went into the teacher’s office, one at a time, and was asked to respond yes or no to the following question. Based on the responses, a 95 percent confidence interval for the proportion of all students at the school who would respond yes to the question was calculated as (0.584, 0.816 ). (b) Given the method used by the environmental science teacher to collect the responses, explain how bias might have been introduced and describe how the bias might affect the point estimate of the proportion of all students at the school who would respond yes to the question.arrow_forwardAn environmental science teacher at a high school with a large population of students wanted to estimate the proportion of students at the school who regularly recycle plastic bottles. The teacher selected a random sample of students at the school to survey. Each selected student went into the teacher’s office, one at a time, and was asked to respond yes or no to the following question. Based on the responses, a 95 percent confidence interval for the proportion of all students at the school who would respond yes to the question was calculated as (0.584, 0.816 ). (a) How many students were in the sample selected by the environmental science teacher?arrow_forward
- An environmental science teacher at a high school with a large population of students wanted to estimate the proportion of students at the school who regularly recycle plastic bottles. The teacher selected a random sample of students at the school to survey. Each selected student went into the teacher’s office, one at a time, and was asked to respond yes or no to the following question. Based on the responses, a 95 percent confidence interval for the proportion of all students at the school who would respond yes to the question was calculated as (0.584, 0.816 ). (c) The statistics teacher at the high school was concerned about the potential bias in the survey. To obtain a potentially less biased estimate of the proportion, the statistics teacher used an alternate method for collecting student responses. A random sample of 300 students was selected, and each student was given the following instructions on how to respond to the question. • In private, flip a fair coin. • If heads, you…arrow_forwardA healthcare information company is interested in estimating the average charge for a standard patient visit to a chiropractor in Maryland, after applying the discount negotiated with a large HMO plan. Data is collected from 16 randomly selected chiropractic practices in Maryland, and the following are some summary statistics:- Mean charge: 25.50 USD- SD of charges: 2.10 USDAssuming the charge data is normally distributed for all chiropractic practices in Maryland, estimate a 95% confidence interval for the mean amount charged by Maryland chiropractors (t (15, 0.05) = 2.13):arrow_forwardThe Medical Association of Trinidad and Tobago is interested in determining the impact of a new drug on the cholesterol levels of women. Data was collected from 11 women diagnosed with high cholesterol. The data below shows the cholesterol levels before and after the drug was administered. Cholesterol Levels in mg/dL Before 227 289 257 228 303 275 262 290 244 233 179After 134 240 230 186 265 242 242 281 240 212 215 a. Calculate a 95% confidence interval for the mean cholestoral level (i) before drugand (ii) after drug. b. Test the hypothesis that the average cholesterol levels before and after administeringthe pill are equal for both mechanics are equal. Use the 1% level of significance.arrow_forward
- The Medical Association of Trinidad and Tobago is interested in determining the impact of a new drug on the cholesterol levels of women. Data was collected from 11 women diagnosed with high cholesterol. The data below shows the cholesterol levels before and after the drug was administered. Cholesterol Levels in mg/dL Before 227 289 257 228 303 275 262 290 244 233 179After 134 240 230 186 265 242 242 281 240 212 215 a. Calculate a 95% confidence interval for the mean cholestoral level (i) before drugand (ii) after drug. b. Test the hypothesis that the average cholesterol levels before and after administeringthe pill are equal for both mechanics are equal. Use the 1% level of significance. c. Confirm test results in part (b) using JASP. Note: All JASP input files and output tables should be providedarrow_forwardThe final exam score was recorded for each Harper statistics student in a sample of 30. A 95% confidence interval forarrow_forwardUse the given data to construct a confidence interval for the population proportion of the requested level.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Hypothesis Testing - Solving Problems With Proportions; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=76VruarGn2Q;License: Standard YouTube License, CC-BY
Hypothesis Testing and Confidence Intervals (FRM Part 1 – Book 2 – Chapter 5); Author: Analystprep;https://www.youtube.com/watch?v=vth3yZIUlGQ;License: Standard YouTube License, CC-BY