A health insurance company wants to know the percentage of its policyholders, who have tried alternative...

A health insurance company wants to know the percentage of its policyholders, who
have tried alternative (e.g. herbal) treatments. A random sample of 25 of the company’s policyholders
were asked whether or not (Yes or No) they have ever tried such treatment. Below are their responses:

Yes Yes No Yes Yes Yes Yes No Yes Yes Yes No No No No No No Yes
No No Yes Yes No Yes No

a. What is the point estimate of the corresponding population proportion?
b. Construct a 96% confidence interval for the percentages of this company’s policyholders who
have tried alternative treatments.
c. Interpret the confidence interval.

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

1. A large insurance company wants to determine whether the proportion of male policyholders who would...

1. A large insurance company wants to determine whether the proportion of male policyholders who would not submit auto insurance claims of under $500 is the same as the proportion of female policyholders who do not submit claims of under $500. A random sample of 400 male policyholders produced 272 who had not submitted claims of under $500, whereas a random sample of 300 female policyholders produced 183 who had not submitted claims of under $500 a) Construct a 90%...

The individual health insurance market covers most people who have health insurance. covers a small percentage...

The individual health insurance market covers most people who have health insurance. covers a small percentage of people with health insurance. is used by employers for their employees. has been eliminated by the Affordable Care Act The claims experience of an insurer’s enrollees does not include the benefits available to the enrollees. the demographic characteristics of the enrollees. the cost-containment provisions of the health plan. the insurer’s administrative costs.

An insurance company has a portfolio of 100 policyholders. 25 of the policyholders have loss distributions...

An insurance company has a portfolio of 100 policyholders. 25 of the policyholders have loss distributions with mean 50and variance 10, and 75 of the policyholders have loss distributions with mean 10and variance 30. Assuming the insurance company charges all policyholders the same premium, what premium should the company charge so that there is a 95% chance that aggregate claims will be less than the total premium collected?

An insurance company wants to know what whether perceptions of personal health are independent of gender.

An insurance company wants to know what whether perceptions of personal health are independent of gender. The company has hired you as a statistical consultant. You then collected a random sample of people and asked about their perceived health status. Based on the results of this survey, is the sex of the respondent independent from their perceived health status? Use 95% confidence.

Accounting Ethics: A health insurance company sold insurance policies that allow policyholders to obtain services from...

Accounting Ethics: A health insurance company sold insurance policies that allow policyholders to obtain services from selected hospitals. The policies fully disclosed the names of these hospitals. However, the insurance company did not mention that the hospitals did not have the capability to perform certain costly procedures, such as heart bypass operations. As a result, if a policyholder one day developed a severe heart blockage, the patient would not have insurance coverage to pay for such a heart bypass procedure....

Diagrams of the normal distribution are almost mandatory A health insurance company charges policyholders a $2450...

Diagrams of the normal distribution are almost mandatory A health insurance company charges policyholders a $2450 annual premium for health insurance for hospitalization. The company estimates that each time a patient is hospitalized costs the company $3600. Furthermore, they have estimated that 85% of patients will not be hospitalized, 10% will be hospitalized once a year, and no one will be hospitalized more than twice. (a) Find the insurance company’s expected profit per policyholder. (b) What is the expected profit...

An insurance company wants to audit health insurance claims in its very large database of transactions....

An insurance company wants to audit health insurance claims in its very large database of transactions. In a quick attempt to assess the level of overstatement of this database, the insurance company selects at random 400 items from the database (each item rep- resents a dollar amount). Suppose that the population mean of the entire database is $8, with population standard deviation $2. (i) Find the probability that the sample mean of the 400 would be less than $6.50. (ii)...

An auto insurance company concludes that 30% of policyholders with only collision coverage will have a...

An auto insurance company concludes that 30% of policyholders with only collision coverage will have a claim next year, 40% of policyholders with only comprehensive coverage will have a claim next year and 50% of policyholders with both collision and comprehensive coverage will have a claim next year. Records show 60% of policyholders have collision coverage 70% have comprehensive coverage and all policyholders have at least one of these coverages. Calculate the percentage of policyholders expected to have an accident...

What complementary and alternative approaches to health have you tried? What influenced your decision to use...

What complementary and alternative approaches to health have you tried? What influenced your decision to use those approaches?

A life insurance company offers loans to its policyholders against the cash value of their policies...

A life insurance company offers loans to its policyholders against the cash value of their policies at a (nominal) annual interest rate of 6 percent, compounded quarterly. Determine the effective annual percentage interest rate on these loans. Round your answer to two decimal places. show work in excel please

Subjects