Question

In: Statistics and Probability

The us centers for disease and prevention (CDC) estimated the per capita spending on health care...

The us centers for disease and prevention (CDC) estimated the per capita spending on health care to be $10,739 in 2017. Suppose that the population mean and population variance of per capital health care expenditure are 10,739 and 625 respectively. What is the probability that the sample mean from a random sample of size 1600 is within 0.5 of the population mean?

Expert Solution

Let X be the per capita health care expenditure

Given , (population mean and variance)

and be the sample mean of per capita health care expenditure of sample size 1600

By central limit theorem

with mean = 10739 and standard error =

Then

z is a standard normal variate with mean = 0 and variance 1

To find

= P( -0.8 < z < 0.8)

= P(-0.8<z<0) +P(0<z<0.8)

= 0.2881+0.2881 (from z table , area from 0 to z, where z =0.8)

= 0.5762

Probability that sample mean lie within 0.5 of population mean is 0.5762

Note : z table for area from 0 to z is given below (area from 0 to z is same as area from -z to 0)

z score	0.00	0.01	0.02	0.03	0.04	0.05	0.06	0.07	0.08	0.09
0.0	0.00000	0.00399	0.00798	0.01197	0.01595	0.01994	0.02392	0.02790	0.03188	0.03586
0.1	0.03983	0.04380	0.04776	0.05172	0.05567	0.05962	0.06356	0.06749	0.07142	0.07535
0.2	0.07926	0.08317	0.08706	0.09095	0.09483	0.09871	0.10257	0.10642	0.11026	0.11409
0.3	0.11791	0.12172	0.12552	0.12930	0.13307	0.13683	0.14058	0.14431	0.14803	0.15173
0.4	0.15542	0.15910	0.16276	0.16640	0.17003	0.17364	0.17724	0.18082	0.18439	0.18793
0.5	0.19146	0.19497	0.19847	0.20194	0.20540	0.20884	0.21226	0.21566	0.21904	0.22240
0.6	0.22575	0.22907	0.23237	0.23565	0.23891	0.24215	0.24537	0.24857	0.25175	0.25490
0.7	0.25804	0.26115	0.26424	0.26730	0.27035	0.27337	0.27637	0.27935	0.28230	0.28524
0.8	0.28814	0.29103	0.29389	0.29673	0.29955	0.30234	0.30511	0.30785	0.31057	0.31327
0.9	0.31594	0.31859	0.32121	0.32381	0.32639	0.32894	0.33147	0.33398	0.33646	0.33891
1	0.34134	0.34375	0.34614	0.34849	0.35083	0.35314	0.35543	0.35769	0.35993	0.36214
1.1	0.36433	0.36650	0.36864	0.37076	0.37286	0.37493	0.37698	0.37900	0.38100	0.38298
1.2	0.38493	0.38686	0.38877	0.39065	0.39251	0.39435	0.39617	0.39796	0.39973	0.40147
1.3	0.40320	0.40490	0.40658	0.40824	0.40988	0.41149	0.41309	0.41466	0.41621	0.41774
1.4	0.41924	0.42073	0.42220	0.42364	0.42507	0.42647	0.42785	0.42922	0.43056	0.43189
1.5	0.43319	0.43448	0.43574	0.43699	0.43822	0.43943	0.44062	0.44179	0.44295	0.44408
1.6	0.44520	0.44630	0.44738	0.44845	0.44950	0.45053	0.45154	0.45254	0.45352	0.45449
1.7	0.45543	0.45637	0.45728	0.45818	0.45907	0.45994	0.46080	0.46164	0.46246	0.46327
1.8	0.46407	0.46485	0.46562	0.46638	0.46712	0.46784	0.46856	0.46926	0.46995	0.47062
1.9	0.47128	0.47193	0.47257	0.47320	0.47381	0.47441	0.47500	0.47558	0.47615	0.47670
2	0.47725	0.47778	0.47831	0.47882	0.47932	0.47982	0.48030	0.48077	0.48124	0.48169
2.1	0.48214	0.48257	0.48300	0.48341	0.48382	0.48422	0.48461	0.48500	0.48537	0.48574
2.2	0.48610	0.48645	0.48679	0.48713	0.48745	0.48778	0.48809	0.48840	0.48870	0.48899
2.3	0.48928	0.48956	0.48983	0.49010	0.49036	0.49061	0.49086	0.49111	0.49134	0.49158
2.4	0.49180	0.49202	0.49224	0.49245	0.49266	0.49286	0.49305	0.49324	0.49343	0.49361
2.5	0.49379	0.49396	0.49413	0.49430	0.49446	0.49461	0.49477	0.49492	0.49506	0.49520
2.6	0.49534	0.49547	0.49560	0.49573	0.49585	0.49598	0.49609	0.49621	0.49632	0.49643
2.7	0.49653	0.49664	0.49674	0.49683	0.49693	0.49702	0.49711	0.49720	0.49728	0.49736
2.8	0.49744	0.49752	0.49760	0.49767	0.49774	0.49781	0.49788	0.49795	0.49801	0.49807
2.9	0.49813	0.49819	0.49825	0.49831	0.49836	0.49841	0.49846	0.49851	0.49856	0.49861
3	0.49865	0.49869	0.49874	0.49878	0.49882	0.49886	0.49889	0.49893	0.49896	0.49900
3.1	0.49903	0.49906	0.49910	0.49913	0.49916	0.49918	0.49921	0.49924	0.49926	0.49929
3.2	0.49931	0.49934	0.49936	0.49938	0.49940	0.49942	0.49944	0.49946	0.49948	0.49950
3.3	0.49952	0.49953	0.49955	0.49957	0.49958	0.49960	0.49961	0.49962	0.49964	0.49965
3.4	0.49966	0.49968	0.49969	0.49970	0.49971	0.49972	0.49973	0.49974	0.49975	0.49976
3.5	0.49977	0.49978	0.49978	0.49979	0.49980	0.49981	0.49981	0.49982	0.49983	0.49983
3.6	0.49984	0.49985	0.49985	0.49986	0.49986	0.49987	0.49987	0.49988	0.49988	0.49989
3.7	0.49989	0.49990	0.49990	0.49990	0.49991	0.49991	0.49992	0.49992	0.49992	0.49992
3.8	0.49993	0.49993	0.49993	0.49994	0.49994	0.49994	0.49994	0.49995	0.49995	0.49995
3.9	0.49995	0.49995	0.49996	0.49996	0.49996	0.49996	0.49996	0.49996	0.49997	0.49997
4	0.49997	0.49997	0.49997	0.49997	0.49997	0.49997	0.49998	0.49998	0.49998	0.49998
4.1	0.49998	0.49998	0.49998	0.49998	0.49998	0.49998	0.49998	0.49998	0.49999	0.49999
4.2	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999
4.3	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999	0.49999
4.4	0.49999	0.49999	0.50000	0.50000	0.50000	0.50000	0.50000	0.50000	0.50000	0.50000
4.5	0.50000	0.50000	0.50000	0.50000	0.50000	0.50000	0.50000	0.50000	0.50000	0.50000

orchestra answered 1 year ago

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