The mean cost to Metropolis of an insured hospitalized influenza patient is $5634 with a standard deviation of $1204 mg. Let us assume that the cost for any patient is independent from the cost of any other patient. In the coming influenza season, Metropolis expects 28900 insured hospitalized influenza patients. Suppose we look at the cost of each hospitalized influenza patient during the influenza season. Let M be the random variable representing the mean cost of all the 28900 insured hospitalized influenza patients. Let T = the random variable representing the total cost of the 28900 insured hospitalized influenza patients. a) What theorem will let us treat T and M as approximately normal random variables? 301 TheoremConvolution Theorem    Law of Large NumbersChebychev's TheoremMonte Carlo TheoremCentral Limit Theorem

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The mean cost to Metropolis of an insured hospitalized influenza patient is $5634 with a standard deviation of $1204 mg. Let us assume that the cost for any patient is independent from the cost of any other patient. In the coming influenza season, Metropolis expects 28900 insured hospitalized influenza patients. Suppose we look at the cost of each hospitalized influenza patient during the influenza season. Let M be the random variable representing the mean cost of all the 28900 insured hospitalized influenza patients. Let T = the random variable representing the total cost of the 28900 insured hospitalized influenza patients.

a) What theorem will let us treat T and M as approximately normal random variables?

301 TheoremConvolution Theorem    Law of Large NumbersChebychev's TheoremMonte Carlo TheoremCentral Limit Theorem



b) What is the expected value of T? 

c) What is the standard deviation of T?

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