Question

You may need to use the appropriate appendix table or technology to answer this question. Health insurers are beginning to offer telemedicine services online that replace the common office visit. A company provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments. The company claims that users of its online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 20 online doctor visits, are consistent with the savings per visit reported by the company. 86 28 34 99 77 49 50 43 34 70 42 90 87 68 67 72 87 94 47 76 Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings in dollars for a televisit to the doctor as opposed to an office visit. (Round your answers to the nearest cent.) $ to $ Need Help

Answer 1

Answer:

(62.66 ; 67.34)

Step-by-step explanation:

Given the data:

86 28 34 99 77 49 50 43 34 70 42 90 87 68 67 72 87 94 47 76

Using a calculator :

Sample mean, xbar = 65

Sample. Standard deviation s = 22.35

Confidence interval :

Xbar ± standard Error

Standard Error = Tcritical * s/√n

TCritical at 95%, df = 19 = 2.093

Standard Error = 2.093 * (22.35/√20) = 2.339

Lower boundary = 65 - 2.339 = 62.661

Upper boundary = 65 + 2.339 = 67.339

(62.661 ; 67.339)

(62.66 ; 67.34)