Question

Health insurers are beginning to offer telemedicine services online that replace the common office visit. A company provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments. The company claims that users of its online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 20 online doctor visits, are consistent with the savings per visit reported by the company.

90	32	38	103
81	53	54	47
38	74	46	94
91	72	71	76
91	98	51	80

Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings in dollars for a televisit to the doctor as opposed to an office visit. (Round your answers to the nearest cent.)

$  to $

Answer 1

For calculating the confidence interval first we need to calculate mean and standard deviation. MS Excel was used for calculating mean and standard deviation. Following is the screenshot for the same:

Confidence Interval Calculation

A 95% confidence interval for the mean savings in dollars for a televisit to the doctor as opposed to an office visit is $ 58.54 to $ 79.46