The amount of money spent on health care is an important issue for workers because many companies provide health insurance that only partially covers many medical procedures. The director of employee benefits at a midsize company wants to determine the amount spent on health care by the typical hourly worker in the company. A random sample of 25 workers is ­selected, and the amounts they spent on their families€™ health care needs during the past year are given here.

a. Graph the data using a boxplot or normal probability plot, and determine whether the population has a normal distribution.
b. Based on your answer to part (a), is the mean or the median cost per household a more appropriate measure of what the typical worker spends on health care needs?
c. Place a 95% confidence interval on the amount spent on health care by the typical worker. Explain what the confidence interval is telling us about the amount spent on health care needs.
d. Does the typical worker spend more than $ 400 per year on health care needs? Use α = .05.

Transcribed Image Text:

400 345 248 1,290 398 218 197 342 208 223 531 172 4,321 143 254 201 3,142 219 276 326 207 225 123 211 108