The Bureau of Labor Statistics shows that the average insurance cost to a company per hour worked for an employee by major industry group, is $2.94 for construction workers and $3.76 for manufacturing workers. Suppose these figures were obtained from 14 construction workers and 15 manufacturing workers and that their respective population standard deviations are $1.38 and $1.51. Assume that such insurance costs are normally distributed in the population.

Calculate a 98% confidence interval to estimate the difference in the mean hourly company expenditures for insurance for these two groups. What is the value of the point estimate?Test to determine whether there is a significant difference in the hourly rates employers pay for insurance between construction workers and manufacturing workers. Use a 2% level of significance.

Does the federal government have a moral obligation to cover the cost of health care for individuals who cannot afford health insurance or whose health insurance benefits have been exhausted? Apply the utilitarianism theory to answer.

Suppose that the mean annual cost of automobile insurance in NC is $989 with standard deviation $225. What is the probability that the average cost for a sample of 50 NC automobile insurance policies is within $35 of the average annual cost for all policies? (4 decimal places). Find answer on statcrunch

an example of step fixed costs would be: 1. the cost of factory insurance because the insurance company increased the premium 2. the cost of supervision since a second supervisor was added to oversee the new second shift. 3. depreciation of equipment because it is computed on the units of production. 4. utility costs because it costs more to heat the building in the winter.

Previous info: Cost Is No Object is a car rental service that specializes in lending antique and luxury cars to clients on a short-term basis. A typical customer might rent a vintage convertible to transport out-of-town clients to a business meeting, or rent a luxury car to transport a wedding party. The service currently has three employees and ten vehicles that it rents.

Case Projects CH.4 Case: Cost Is No Object

In earlier chapters, you developed classes needed for Cost Is No Object—a car rental service that specializes in lending antique and luxury cars to clients on a short-term basis. The rental service produces computerized paychecks for its employees every week. Write a program that gets data for each of the following:  

An employee ID number

A first name

  A last name

A street address

A zip code

An hourly pay rate

Number of hours worked this week

An insurance plan code

Create an application that prompts the user for employee data; the application continues to accept data for new employees until the user enters 0 for an ID number to quit. While the ID number is not zero, prompt the user for a value for each field in turn. Any time the user enters an invalid value, continue to reprompt the user for the same data. Continue with the next data item only when the previous item is valid, as follows:

An employee ID must be between 100 and 999 inclusive.

A zip code must not be greater than 99999.

An hourly pay rate must be between $6.00 and $25.00 inclusive.

The number of hours worked in a week cannot be negative or more than 70.

An insurance plan code must be 1 or 2.

When all the needed data has been entered correctly for an employee, display a copy of all the data fields for the employee as well as the following:

Gross pay, calculated as hours worked times pay rate

Income tax, which is calculated as 15% of the gross pay if the gross pay is $400 or less; otherwise, it is 20% of the gross pay

An insurance premium, which is $60 for insurance plan code 1 and $100 for insurance plan code 2

Net pay, which is calculated as gross pay minus income tax, minus insurance premium; if the net pay is negative (the employee did not earn enough to cover the tax and insurance), then the net pay should be $0

Confidence Intervals

1. The rising cost of malpractice insurance is a growing problem. A random sample of thirty-three General Surgery claims from TN had a mean cost of $47505 with a standard deviation of $1535.

   1. Find a 95% confidence interval for the mean claim amount of all General Surgery claims in TN.

   2. Interpret the confidence interval in the words of the problem.

   3. Find the error bound.

   4. A senator claims that mean for all General Surgery claims in TN is more than $45000. Is there evidence to support or refute this claim? Justify!

An insurance company is interested in estimating the population mean cost of basic dental

cleaning at dentists in Saskatoon. Suppose there are only two dentists in Saskatoon:

Dentist A and Dentist B. Suppose also that the cost of basic dental cleaning varies only

depending on how well the patient practices regular dental hygiene, so that the cost of

basic dental cleaning roughly follows a Normal distribution regardless of the dentist.

The insurance company selects 8 sample patients and sends them to both Dentist A and

Dentist B. They send the patients in random order, such that half of the patients are seen

by Dentist A first, and half are seen by Dentist B first, so as not to bias the results. The

cost of basic dental cleaning for these 8 patients seen by both Dentists A and B are

provided below. The insurance company would like to determine whether the population

mean cost of basic dental cleaning by Dentist A is different from the population mean

cost of basic dental care by Dentist B. Let the population of costs of basic dental care

from Dentist A be population 1.

Patient 1 2 3 4 5 6 7 8

Dentist A $100 $120 $125 $110 $95 $105 $120 $115

Dentist B $150 $100 $140 $100 $95 $105 $100 $120

Conduct an appropriate hypothesis test using the critical value method. [10 marks]

NOTE: You are encouraged to use Excel to calculate the sample mean(s) and sample

standard deviation(s) for this question. If you use Excel for this, provide the entire

command (e.g. if you take the average of 1,2,3, then write down =AVERAGE(1,2,3)).

Round average and standard deviation calculations to 2 decimal places.

If health insurance is supposed to cover the cost of care how would you explain to a patient that a drug costing $800 a month be covered by only $200. Do you think that’s ethical and morally right?

One of the factors that determines cost of Homeowners insurance is location. Many areas of our country are exposed to severe weather, such as hurricanes, tornadoes, etc. Should the governments in those areas increase their responsibility for helping those that suffer from severe weather losses? Explain why, or why not.