2. Shaver Manufacturing,Inc., offers dental insurance to its employees. A recent
ID: 2918290 • Letter: 2
Question
2. Shaver Manufacturing,Inc., offers dental insurance to its employees. A recent study bythe human resource director shows the annual cost per employee peryear followed the normal probability distribution, with a mean of$1,280 and a standard deviation of $420 per year.
a. What fraction of the employees cost more than $1,500 per year fordental expenses?
b. Whatfraction of the employees cost between $1,500 and $2,000 peryear?
c. Estimate the percent that did not have any dental expense.
d. Whatwas the cost for the 10% of employees who incurred the highestdental expense?
Explanation / Answer
X~Normal(=1280, =420) (a) P(X>1500) = P((X-)/ > (1500-1280)/420) = P(Z>0.52) = 1-P(Z< 0.52) = 0.3015 (check normal table) (b) P(1500Related Questions
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