Question

please answer the question using Excel with formula please explain how the answer came

1. Many drugs used to treat cancer are expensive. BusinessWeek reported on the cost per treatment of Herceptin, a drug used to treat breast cancer. Typical treatment costs (in dollars) for Herceptin are provided by a simple random sample of 10 patients.

5798​7446​5119​5376​5495​5237​4814​6578​3717​5920

a. Develop a point estimate of the mean cost per treatment with Herceptin.

b. Develop a point estimate of the standard deviation of the cost per treatment with Herceptin.

Answer 1

Using excel:

i) First enter all observations in one column(in column A)

ii) Then using command: =AVERAGE(A1:A10), find average of all observations in cell A11.

iii) Then using command: = STDEV.S(A1:A10), find standard deviation in cell A12.

Using formula:

a) Point estimate of the mean cost per treatment is Sample mean.

Sample mean = Sum of all observations / Number of o0bservations

                       = (5798 +7446 + 5119 + 5376 + 5495 + 5237 + 4814 + 6578 + 3717 +5920) / 10

                       = 55500 / 10

                       = 5550

Point estimate of the mean cost per treatment with Herceptin is 5550

x
5798	248	61504
7446	1896	3594816
5119	-431	185761
5376	-174	30276
5495	-55	3025
5237	-313	97969
4814	-736	541696
6578	1028	1056784
3717	-1833	3359889
5920	370	136900

b) Point estimate of the standard deviation of the cost per treatment with Herceptin is

s =1003.805                (Round to 3 decimal)

Point estimate of the standard deviation of the cost per treatment with Herceptin is 1003.805