Question
Here is the question to answer: Families USA, a monthly magazine that discusses issues related to health and health costs, surveyed 20 of its subscribers.
Here is the question to answer:
Families USA, a monthly magazine that discusses issues related to health and health costs, surveyed 20 of its subscribers. It found that the annual health insurance premi-ums for a family with coverage through an employer averaged $10,979. The standard deviation of the sample was $1,000. a. Based on this sample information, develop a 90% confidence interval for the popula-tion mean yearly premium. b. How large a sample is needed to find the population mean within $250 at 99% confidence?
Here is what I have from getting help. However, i still don't understand how to calculate t and look it up. I'm not finding this on the standard table. Can you help me understand how to use it?
mean + - t(a/2) * stdev / n
19 df 0.05
1.73 t
10979 + - 1.73 * 1000/20
386.8397601
10979 + - 387
10592 11366
Confidence interval from $10,592 to $11,366
B.
0.005
250 = 2.576 * 1000/ n
250 = 2576 /n
62500 = 6635776 /n
106.172416 = n
106 is number needed for 250 with 99% confidence
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