A business manager in a healthcare facility has been investi

A business manager in a health-care facility has been investigating the cost of maintaining patients within its plan. A sample of 15 cases (different from those in WQ2) for the last month reported the following:

1

$1,165.60

4

$1,054.00

7

$1,240.00

10

$1,012.00

13

$1,091.20

2

$1,401.20

5

$1,245.00

8

$1,178.00

11

$1,324.00

14

$1,034.00

3

$1,100.00

6

$1,254.00

9

$1,234.00

12

$1,016.80

15

$1,079.00

In its advertising campaigns, the business manager has claimed that the cost of patient care runs about $1,130 per month.

Assuming a level of significance ? =0.05 check the validity of the health care facility

Solution

Using basic definitions,

Mean : - 1161.92

Median :- 1165.6

Standard Deviation = 118.8418

To Check for Validity...

Claim is that U is 1130

We need to calculate the probability of given data using mU = 1130

We need Standard Deviation , which will be approximated by 118.8418 / (sqrt(15)) = 30.6848

|mean - mU |= 31.92

|mean - mu | / Sigma = 1.0403

i.e. |Z| = 1.0403

Probability (|Z| < 1.0403 ) = 0.8509

Probability (|Z| > 1.0403 ) = .1491

Feel free to ask if you have any query.

Kindly give reward points