1 The proportion of the US population made up of elderly per

1. The proportion of the U.S. population made up of elderly persons in the United States is rapidly increasing. The implication for health care expenditures is profound because elderly persons use the health care system more frequently than younger persons. In one study the mean cumulative expenditures per person for acute and long-term care from the age of 65 years until death and the corresponding age at death were recorded. Expenditures are given in 1996 dollars. Age at Death 65, 70, 75, 80, 85, 90, 95, 100 mena expendature: 31,181, 87,116, 123,823, 157,903, 193,727, 235,369, 287,980, 358,174 d) Calculate the 95% confidence interval for . e) Find the predicted mean expenditure for a person age 77 at death, and the 95% confidence interval for this prediction. f) Find the predicted mean expenditure for a person age 97 at death, and the 95 confidence interval for this prediction. g) Why are the two confidence intervals in (e) and (f) different widths? h) Is a parametric analysis justified for these data? Support your answer showing the distribution of i and plotting the value of i for each value of Xi.

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