According to the Canadian Institute for Health Information in 2017, total health expenditure in Canada is expected to reach $242 billion, or $6,604per person. It is anticipated that, overall, health spending will represent 11.5% of Canada's gross domestic product (GDP). Use $6,604 as the population mean and suppose a survey research firm will take a sample of 100 Canadians to investigate the nature of their health expenditures. Assume the population standard deviation is $2,000.

(1) What is the sampling distribution, mean, and standard deviation of the mean amount of health care expenditures for a sample of 100 people?

(4) Calculate the probability the sample mean will be within $160 of the population mean.

Hint: Use NORM.DIST in Excel.

(3) Calculate the probability the sample mean will be greater than $7,250. If the survey research firm reports a sample mean greater than $7,250, would you question whether the firm followed correct sampling procedures? Why or why not?