Dennis Cauchon and Julie Appleby reported in USA Today that the average patient cost per stay in American hospitals was $8,166. Assume that this cost is exponentially distributed.
a. Determine the probability that a randomly selected patient’s stay in an American hospital will cost more than $10,000.
b. Calculate the probability that a randomly selected patient’s stay in an American hospital will cost less than $5,000.
c. Compute the probability that a randomly selected patient’s stay in an American hospital will cost between $8,000 and $12,000.