Suppose the mean cost across the country of a 30-day supply of a generic drug is...

Suppose the mean cost across the country of a 30-day supply of a generic drug is $46.58, with standard deviation $4.84. Find the probability that the mean of a sample of 100 prices of 30-day supplies of this drug will be between $45 and $50.

****YOU MUST SHOW ALL OF YOUR WORK TO DOCUMENT HOW YOU ARRIVED AT THE SOLUTION****

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Expert Solution

Solution :

Given that,

mean = = $46.58

standard deviation = = $ 4.84

n = 100

= = $46.58

= / n = 4.84 / 100 = 0.484

P(45 < < 50)

= P[(45 - 46.58) / 0.484 < ( - ) / < (50 - 46.58) /0.484 )]

= P(-3.26 < Z < 7.07)

= P(Z < 7.07) - P(Z < -3.26)

Using z table,

= 1 - 0.0006

= 0.9994

orchestra answered 1 year ago

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