Question

In: Statistics and Probability

Shaver Manufacturing, Inc. offers dental care insurance to its employees. A recent study by the director...

Shaver Manufacturing, Inc. offers dental care insurance to its employees. A recent study by the director of human resources shows that the annual cost per employee had a normal probability distribution, with an average expense of $ 1,280 and an average dispersion of $ 420 annually. Based on the information obtained, we want to identify: what percentage of employees generated: more than $ 1,500 per year of dental expenses; between $ 1,500 and $ 2.00 per year for dental expenses; calculate the percentage that did not generate expenses for dental care; what was the cost of the 10% of employees that generated higher expenses for dental care. Use all the tools learned in the course and carry out the analysis required for the study detailing an individual sentence of interpretation for each situation.

Solutions

Expert Solution

Thank you.

orchestra answered 1 year ago
Next > < Previous

Related Solutions

Shaver manufacturing, Inc. offers dental insurance to its employees. A recent study by the Human Resource...
Shaver manufacturing, Inc. offers dental insurance to its employees. A recent study by the Human Resource Director shows the annual cost per employee per year followed the normal distribution, with a mean of $1 280 and the standard deviation of $420 per year. In all questions start with sketching a normal curve. Cross-hatch requested area/probability. If you calculate z-value, round it to two decimal places. What was the cost for the 15% of employees that incurred the highest dental expense?...
Shaver Manufacturing Inc. offers dental insurance to its employees. A recent study by the human resource...
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. What is the probability the employees’ dental expenses will be more than $1500 per year? What is the probability the employees’ dental expenses will be between $1500 and $2000 per year? What was the minimum cost for...
A company offers its employees dental care insurance. A recent study shows that the annual cost...
A company offers its employees dental care insurance. A recent study shows that the annual cost per employee had a normal distribution, with an average of $ 1280 and a standard deviation of $ 420 annually. What is the probability that a randomly chosen employee spends between $ 1,500 and $ 2,000 per year on dental expenses? What is the minimum cost to be in the top 10% for annual dental care? 8,000 employees are chosen at random. Approximately how...
Anderson Construction Company offers dental insurance to its employees. A recent study by the human resource...
Anderson Construction Company offers dental insurance to its employees. A recent study by the human resource director shows the annual cost per employee per year followed the normal probability distribution, with a mean of $1,280 and a standard deviation of $420 per year. What percent of the employees cost Anderson more than $1,500 per year for dental insurance? What percent of the employees cost Anderson between $1,500 and $2,000 per year for dental insurance? What percent of the employees did...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs. Price per Unit Variable Cost per Unit Units Sold per Year Cleaning $ 320 $ 180 8,500 Filling 600 580 1,200 Capping 1,450 800 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $500,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs. Price per Unit Variable Cost per Unit Units Sold per Year Cleaning $ 380 $ 210 8,000 Filling 660 640 1,700 Capping 1,525 890 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $530,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and costs: Price per Unit Variable Cost per Unit Units Sold per Year Cleaning $ 460 $ 250 8,000 Filling 740 720 1,700 Capping 1,625 1,010 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $570,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 25...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and costs: Price per Unit Variable Cost per Unit Units Sold per Year Cleaning $ 140 $ 90 8,000 Filling 420 400 1,700 Capping 1,225 530 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $410,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and...
Assume that Painless Dental Clinics, Inc., offers three basic dental services. Here are its prices and costs: Price per Unit Variable Cost per Unit Units Sold per Year Cleaning $ 260 $ 150 7,500 Filling 540 520 2,000 Capping 1,375 710 500 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $470,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 30...
A company offers health insurance to its employees. The insurance pays continuous premiums at the rate...
A company offers health insurance to its employees. The insurance pays continuous premiums at the rate of $12,000/year whenever the employee is sick, and nothing otherwise. Suppose that a typical employee gets sick on average every 4 months ,and when sick remains so for an average of 1/2-months. The company constructs an appropriate continuous-time Markov chain to model this situation. (a) Suppose an employee is healthy today. Find the total expected benefits that she will receive over the next year.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT