Question

In: Statistics and Probability

Shaver Manufacturing Inc. offers dental insurance to its employees. A recent study by the human resource...

  1. Shaver Manufacturing Inc. offers dental insurance to its employees. A recent study by the human resource director shows that the annual cost per employee per year followed the normal distribution, with a mean of $1280 and a standard deviation of $420 per year.

  1. What is the probability the employees’ dental expenses will be more than $1500 per year?
  2. What is the probability the employees’ dental expenses will be between $1500 and $2000 per year?
  3. What was the minimum cost for the 10 percent of employees that incurred the highest dental expenses? (1 mark) Please provide correct answers.

Solutions

Expert Solution

X :  the annual cost per employee per year

X ~ N (1280 , 420)

a).the probability that the employees’ dental expenses will be more than $1500 per year is:-

[ in any blank cell of excel type =NORMSDIST(0.5238)]

b). the probability that the employees’ dental expenses will be between $1500 and $2000 per year is:-

[ in any blank cell of excel type =NORMSDIST(1.7143) and the another is already obtained in the previous part ]

c).let the minimum cost be $ a.

according to the problem,

[ in any blank cell of excel type =NORMSINV(0.9)]

the minimum cost for the 10 percent of employees that incurred the highest dental expenses was $ 1818.25

*** if you have any doubt regarding the problem ,please write it in the comment box...if satisfied,please UPVOTE.

orchestra answered 1 year ago
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