Newark College has 240 full-time employees who are currently covered under the school’s health care plan. The average out-of-pocket cost for the employees on the plan is $1,880 with a standard deviation of $515. Newark College is performing an audit of its health care plan and has randomly selected 30 employees to analyze their out-

of-pocket costs.

a. Calculate the standard error of the mean.

b. What is the probability that the sample mean will be less than $1,825?

c. What is the probability that the sample mean will be more than $1,840?

d. What is the probability that the sample mean will be between $1,900 and $1,950?

AppendixLO1