A study was conducted to estimate hospital costs for accident victims who wore seat belts. Twenty randomly
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A study was conducted to estimate hospital costs for accident victims who wore seat belts. Twenty randomly selected cases have a distribution that appears to be approximately bell-shaped with a mean of $9004 and a standard deviation of $5629 (based on data from the U.S. Department of Transportation).
a. Construct the 95% confidence interval for the mean of all such costs.
b. If you are a manager for an insurance company that provides lower rates for drivers who wear seat belts and you want a conservative estimate for a worst-case scenario, what amount should you use as the possible hospital cost for an accident victim who wears a seat belt?
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Related Book For
Statistical Reasoning For Everyday Life
ISBN: 978-0134494043
5th Edition
Authors: Jeff Bennett, William Briggs, Mario Triola
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