Question

Suppose data made available through a health system tracker showed health expenditures were $10,348 per person in the United States. Use $10,348 as the population mean and suppose a survey research firm will take a sample of 100 people to investigate the nature of their health expenditures. Assume the population standard deviation is $2,500.

(b)

What is the probability the sample mean will be within ±$100 of the population mean? (Round your answer to four decimal places.)

(c)

What is the probability the sample mean will be greater than $12,600? (Round your answer to four decimal places.)

If the survey research firm reports a sample mean greater than $12,600, would you question whether the firm followed correct sampling procedures? Why or why not?

No, because $12,600 is within one standard deviation of $10,348.

No, because the probability that the sample mean will be greater than $12,600 is very large.    

Yes, because $12,600 is not within ±$100 of the population mean.

Yes, because the probability that the sample mean will be greater than $12,600 is very small.

Answer 1