3 p QUESTION 9 [Red Cross Red Shield] The distribution of the amount paid in health claims by Red Cross Red Shield (RCRS), a medical insurance company, on individual health insurance plans for college students has mean $500, median $400, and standard deviation 5550 Consider the variation of the amount paid of a sample of 40 plan members. Do you think that the standard deviation of the sample mean of participants (Steve is smaller than, larger than or equal to the standard deviation of individual annual amount paid? Why? a. Not enough Information is given to answer this question Ob. Stow I should be larger than the standard deviation of individual annual amount paid, since the sample has multiple individuals. O srdev Xshould be smaller than the standard deviation of Individual annual amount paid: We take a sample of people (as opposed to picking one perse) and compute the average. The variation of the average is much smaller than the variation of a single value because individual variations will be evened out when we compute the average. O d. Stdevi XI should be the same as the standard deviation of individual annual amount paid