Question

A college has 240 full-time employees that are currently covered under the school's health care plan. The average out-of-pocket cost for the employees on the plan is $1,910 with a standard deviation of 520. The college is performing an audit of its health care plan and has randomly selected 35 employees to analyze their out-of-pocket costs.

a. Calculate the standard error of the mean (round to 2 decimal points).

b. What is the probability that the sample mean will be less than $1,865?

c. What is the probability that the sample mean will be more than $1,880?

d. What is the probability that the sample mean will be between $1,935 and $1,965?

Answer 1