The high cost of health care is a matter of major concern for a large number of families. A random sample of 25 families found that they spend an average of $143 per month and the standard deviation of the sample was found to be $28. Find the 98% confidence interval for the true mean cost of health care per month. Assume the underlying population from which the sample is drawn is known to be normally distributed. Will we use z or t? ________ Why? ______________________________________________________ What is the z or t critical value based on 98% confidence? ________ What is the standard deviation of the sampling distribution of the mean? ________ Calculate the margin of error: E = ________________________
The high cost of health care is a matter of major concern for a large number of families. A random
sample of 25 families found that they spend an average of $143 per month and the standard deviation
of the sample was found to be $28. Find the 98% confidence interval for the true
care per month. Assume the underlying population from which the sample is drawn is known to be
normally distributed.
Will we use z or t? ________ Why? ______________________________________________________
What is the z or t critical value based on 98% confidence? ________
What is the standard deviation of the sampling distribution of the mean? ________
Calculate the margin of error: E = ________________________
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