Americans spend billions of dollars on veterinary care each year, predicted to hit $31 billion this year.

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Americans spend billions of dollars on veterinary care each year, predicted to hit $31 billion this year. The health care services offered to animals rival those provided to humans, with the typical surgery costing from $1700 to $3000, or even more. In 2003, on average, dog owners spent $196 on veterinary-related expenses in the prior 12 months.

Source: American Pet Products Manufacturers Association Assume that annual dog owner expenditure on health care is normally distributed with a mean of

$196 and a standard deviation of $95.

a. What is the probability that a dog owner, randomly selected from the population, spent more than $300 for dog health care in 2003?

b. Suppose a survey of 300 dog owners is conducted, and each person is asked to report the total of their vet care bills for 2003. What is the probability that the mean annual expenditure of this sample falls between $200 and $225?

c. The assumption of a normal distribution in this situation is likely misguided. Explain why and what effect this had on the answers.

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