Medicare’s new medical plans offer a wide range of variations and choices for seniors when picking a drug plan (San Luis Obispo Tribune, November 25, 2005). The monthly cost for a stand-alone drug plan varies from plan to plan and from state to state. The accompanying table gives the premium for the plan with the lowest cost for each state. 

a. Use class intervals of $0 to < $3, $3 to <$6, $6 to <$9, etc., to create a relative frequency distribution for these data.

b. Construct a histogram and comment on its shape.

c. Using the relative frequency distribution or the histogram, estimate the proportion of the states that have a minimum monthly plan of less than $13.00 a month.

Transcribed Image Text:

Cost per Month (dollars) State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas 14.08 20.05 6.14 10.31 5.41 8.62 7.32 6.44 6.44 10.35 17.91 17.18 6.33 13.32 12.30 9.48 12.30 17.06 19.60 6.44 7.32 13.75 1.87 11.60 10.29 1.87 Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey 6.42 19.60 4.43 New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota I ennessee 10.65 4.10 13.27 1.87 14.43 10.07 6.93 10.14 7.32 16.57 1.87 14.08 Cost per Month (dollars) State 10.31 6.33 7.32 8.81 6.93 10.14 11.42 1.87 Utah ermont Washington West Virginia Wisconsin Wyoming