Suppose that yearly health care expenses for a family of four are normally distributed with a mean expense equal to $ 3,000 and a standard deviation of $ 500. An insurance company has decided to offer a health insurance premium reduction if a policyholder’s health care expenses do not exceed a specified dollar amount. What dollar amount should be established if the insurance company wants families having the lowest 33 percent of yearly health care expenses to be eligible for the premium reduction?
Answer to relevant QuestionsSuppose that the 33rd percentile of a normal distribution is equal to 656 and that the 97.5th percentile of this normal distribution is 896. Find the mean m and the standard deviation s of the normal distribution. An advertising agency conducted an ad campaign aimed at making consumers in an Eastern state aware of a new product. Upon completion of the campaign, the agency claimed that 20 percent of consumers in the state had become ...When is it appropriate to use the uniform distribution to describe a random variable x? Anormal probability plot can be constructed using MINITAB. Use the selections Stat: Basic Statistics: Normality test, and select the data to be analyzed. Although the MINITAB plot is slightly different from the plot outlined ...A machine is used to cut a metal automobile part to its desired length. The machine can be set so that the mean length of the part will be any value that is desired. The standard deviation of the lengths always runs at .02 ...
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