Many drugs used to treat cancer are expensive BusinessWeek r

Many drugs used to treat cancer are expensive. BusinessWeek reported on the cost per treatment of Herceptin, a drug used to treat breast cancer (BusinessWeek, January 30, 2006). Typical treatment costs (in dollars) for Herceptin are provided by a simple random sample of 10 patients. 1. 4,368 5,576 2,714 4,915 4,484 4,796 6,443 4,123 4,240 3,828

Develop a point estimate of the mean cost per treatment with Herceptin.

Develop a point estimate of the standard deviation of the cost per treatment with Herceptin (to 1 decimal).

Solution

Getting the mean, X,          
          
X = Sum(x) / n          
Summing the items, Sum(x) =    45487      
As n =    10      
Thus,          
X =    4548.7       [ANSWER, POINT ESTIMATE OF MEAN]

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Setting up tables,          
x   x - X   (x - X)^2  
4368   -180.7   32652.49  
5576   1027.3   1055345.29  
2714   -1834.7   3366124.09  
4915   366.3   134175.69  
4484   -64.7   4186.09  
4796   247.3   61157.29  
6443   1894.3   3588372.49  
4123   -425.7   181220.49  
4240   -308.7   95295.69  
3828   -720.7   519408.49  
          
Thus, Sum(x - X)^2 =    9037938.1      
          
Thus, as           
          
s^2 = Sum(x - X)^2 / (n - 1)          
          
As n =    10      
          
s^2 =    1004215.344      
          
Thus,          
          
s =    1002.105456   [ANSWER, POINT ESTIMATE, STANDARD DEVIATION]