Question

Health insurers are beginning to offer telemedicine services online that replace the common office visit. Wellpoint provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments. Wellpoint claims that users of its LiveHealth 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 Wellpoint.

93 34 41 106 83 56 56 48 40 76 48 97 94 73 74 76 90 98 55 81

Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings for a televisit to the doctor as opposed to an office visit (to 2 decimals).

Answer 1

We have for given data,          
              
Sample mean =70.95      
Sample standard deviation =22.13  
Sample size =20      
Level of significance=1-0.95=0.05      
Degree of freedom =19      
              
t critical value is (by using t table)=   2.093  
              
Confidence interval formula is


=(60.59,81.31)              
              
              
              
Lower confidence limit=   60.59  
              
Upper confidence limit=   81.31