A sample of 25 workers with employer provided health insurance paid an average premium of $6600...

A sample of 25 workers with employer provided health insurance paid an average premium of $6600 with a standard deviation of $800. Construct a 95% confidence interval for the mean premium amount paid by all workers who have employer provided health insurance.

Expert Solution

Solution :

degrees of freedom = n - 1 = 25 - 1 = 24

t/2,df = t_0.025,24 = 2.064

Margin of error = E = t_/2,df * (s / $\sqrt$ n)

= 2.064 * ( 800 / $\sqrt$ 25)

Margin of error = E = 330.24

The 95% confidence interval estimate of the population mean is,

± E

= 6600 ± 330.24

=( $ 6269.76, $ 6930.24 )

orchestra answered 2 years ago

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