Americans spend billions on veterinary care each year. According to the APPA National Pet Owners Survey, U.S. citizens spent $10.1 billion on pet care in 2007. The health care services offered to animals rival those provided to humans, with the typical surgery costing from $1700 to $3000 or more. On Average, a dog owner spent an estimated $670 on veterinary-related expenses in that year. Assume that annual dog owner expenditure on health care is normally distributed with a mean of $670 and a standard deviation of $290. a) What is the probability that a dog owner, randomly selected from the population, spent over $750 on health care in 2007? b) Suppose a survey of 100 dog owners is conducted, and each is asked to report the total of his or her vet care bills for 2007. What is the probability that the mean annual expenditure of this sample is more than $750?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Americans spend billions on veterinary care each year. According to the APPA National Pet Owners Survey, U.S. citizens spent $10.1 billion on pet care in 2007. The health care services offered to animals rival those provided to humans, with the typical surgery costing from $1700 to $3000 or more. On Average, a dog owner spent an estimated $670 on veterinary-related expenses in that year. Assume that annual dog owner expenditure on health care is
a) What is the probability that a dog owner, randomly selected from the population, spent over $750 on health care in 2007?
b) Suppose a survey of 100 dog owners is conducted, and each is asked to report the total of his or her vet care bills for 2007. What is the probability that the mean annual expenditure of this sample is more than $750?
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