Private hospital mean cost is 1328 taka. Assume that the cost for this type of hospital is normally distributed with a standard deviation of 192. a. What is the probability that the cost will be more than 1500 taka? b. What is the probability that the cost will be less than 1250 taka? c. What is the probability that the cost will be between 1300 and 1400? d. If the cost to a patient is in the lower 9% of charges, what was the cost of this patient’s visit?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Private hospital mean cost is 1328 taka. Assume that the cost for this type of hospital is
a standard deviation of 192. a. What is the
probability that the cost will be less than 1250 taka? c. What is the probability that the cost will be between 1300
and 1400? d. If the cost to a patient is in the lower 9% of charges, what was the cost of this patient’s visit?
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