A business manager in a health-care facility has been investigating the cost of
ID: 3429516 • Letter: A
Question
A business manager in a health-care facility has been investigating the cost of maintaining patients within its plan. A sample of 15 cases (different from those in WQ2) for the last month reported the following:
1
$1,165.60
4
$1,054.00
7
$1,240.00
10
$1,012.00
13
$1,091.20
2
$1,401.20
5
$1,245.00
8
$1,178.00
11
$1,324.00
14
$1,034.00
3
$1,100.00
6
$1,254.00
9
$1,234.00
12
$1,016.80
15
$1,079.00
In its advertising campaigns, the business manager has claimed that the cost of patient care runs about $1,130 per month.
Assuming a level of significance ? =0.05 check the validity of the health care facility
1
$1,165.60
4
$1,054.00
7
$1,240.00
10
$1,012.00
13
$1,091.20
2
$1,401.20
5
$1,245.00
8
$1,178.00
11
$1,324.00
14
$1,034.00
3
$1,100.00
6
$1,254.00
9
$1,234.00
12
$1,016.80
15
$1,079.00
Explanation / Answer
Using basic definitions,
Mean : - 1161.92
Median :- 1165.6
Standard Deviation = 118.8418
To Check for Validity...
Claim is that U is 1130
We need to calculate the probability of given data using mU = 1130
We need Standard Deviation , which will be approximated by 118.8418 / (sqrt(15)) = 30.6848
|mean - mU |= 31.92
|mean - mu | / Sigma = 1.0403
i.e. |Z| = 1.0403
Probability (|Z| < 1.0403 ) = 0.8509
Probability (|Z| > 1.0403 ) = .1491
Feel free to ask if you have any query.
Kindly give reward points
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.