ey reports that the ave 191/cfi/420!/4/4@0.00:57.6 a. Provide a point estimate of the mean annual automobile insurance premium in Michigan. b. Develop a 95% confidence interval for the mean annual automobile insurance premium in Michigan. c. Does the 95% confidence interval for the annual automobile insurance premium in Michigan include the national average for the United States? What is your inter- pretation of the relationship between auto insurance premiums in Michigan and the national average? 21. Telemedicine. 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 (Bloomberg Businessweek, March 4-9, 2014). 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. 40 93 83 93 92 96 82 49 78 105 73 40 48 53 56 100 55 74 34 76 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. We've updated our read aloud feature! Give it a try here. ts Reserved. May not be copied, scanned, or duplicated. in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights i gage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 Aa 11:07 AM 10/17/20 GP
Addition Rule of Probability
It simply refers to the likelihood of an event taking place whenever the occurrence of an event is uncertain. The probability of a single event can be calculated by dividing the number of successful trials of that event by the total number of trials.
Expected Value
When a large number of trials are performed for any random variable ‘X’, the predicted result is most likely the mean of all the outcomes for the random variable and it is known as expected value also known as expectation. The expected value, also known as the expectation, is denoted by: E(X).
Probability Distributions
Understanding probability is necessary to know the probability distributions. In statistics, probability is how the uncertainty of an event is measured. This event can be anything. The most common examples include tossing a coin, rolling a die, or choosing a card. Each of these events has multiple possibilities. Every such possibility is measured with the help of probability. To be more precise, the probability is used for calculating the occurrence of events that may or may not happen. Probability does not give sure results. Unless the probability of any event is 1, the different outcomes may or may not happen in real life, regardless of how less or how more their probability is.
Basic Probability
The simple definition of probability it is a chance of the occurrence of an event. It is defined in numerical form and the probability value is between 0 to 1. The probability value 0 indicates that there is no chance of that event occurring and the probability value 1 indicates that the event will occur. Sum of the probability value must be 1. The probability value is never a negative number. If it happens, then recheck the calculation.
Problem 21.
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