Question

Health insurers are beginning to offer telemedicine services online that replace the common office visit. A company provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments. The company claims that users of its online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 20 online doctor visits, are consistent with the savings per visit reported by the company.

89	31	37	102
80	52	53	46
37	73	45	93
90	71	70	75
90	97	50	79

Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings in dollars for a televisit to the doctor as opposed to an office visit. (Round your answers to the nearest cent.)

$  to $

Answer 1

We have given that,          
          
Sample mean =   68  
Sample standard deviation =22.3513
Sample size =20  
Level of significance=   1-0.95=   0.05  
Degree of freedom =n-1=20-1=19  
          
t critical value is (by using t table)=   2.093  
          
Confidence interval formula is

=(57.54,78.46)  
      
          
          
          
Lower confidence limit=   57.54  
          
Upper confidence limit=   78.46

Therefore, 95% confidence interval for the mean savings in dollars for a televisit to the doctor as opposed to an office visit is between $ 57.54 to $ 78.46