How do you solve this? I really don't understand...
1 answer:
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Answer:
Probability that the cost will be less than $500 is 0.95994 .
Step-by-step explanation:
We are given that Money magazine reported that a visit to a hospital emergency room for something as simple as a sore throat has a mean cost of $348 with a standard deviation of $87.
Let X = cost of a hospital emergency room visit for this medical service
So, X ~ N()
The standard normal z score distribution is given by;
Z = ~ N(0,1)
(a) Probability that the cost will be less than $500 = P(X < $500)
P(X < 500) = P( <
) = P(Z < 1.75) = 0.95994 {from z table}
Therefore, the probability that the cost will be less than $500 is 0.95994 .