Question
A study was conducted to estimate hospital costs for accident victims who wore seat belts. Twenty-one randomly selected cases have a distribution that appears to
A study was conducted to estimate hospital costs for accident victims who wore seat belts. Twenty-one randomly selected cases have a distribution that appears to be approximately bell shaped with a mean of $9458 and a standard deviation of $5686. Complete parts(a) and(b).
a. Construct the95% confidence interval for the mean of all such costs.
$
6870
6870<<$
12046
12046
(Round to the nearest dollar asneeded.)
b. If you are a manager for an insurance company that provides lower rates for drivers who wear seat belts and you want a conservative estimate for aworst-case scenario, what amount should you use as the possible hospital cost for an accident victim who wears a seatbelt?
Using the results from part(a), the conservative estimate would be $
nothing
.
(Round to the nearest dollar asneeded.)
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