Question

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. 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. Click on the datafile logo to reference the data. 923440 1058355 564940 764896 937473 7893100 5382 Assuming that 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. If required, round your answers to two decimal places.

Answer 1

Answer:

Step-by-step explanation:

Hello!

X: the amount of money saved by making an online doctor visit.

Assuming that the population has a normal distribution (approx), you have to estimate the mean savings.

n= 20

X[bar]= 70.75

S= 22.57

Using  the student t distribution the formula for the interval is:

[X[bar]±$t_{n-1;1-\alpha /2}$* $\frac{S}{\sqrt{n} }$]

$t_{n-1;1-\alpha /2}= t_{19;0.975}= 2.093$

[70.75±2.093*$\frac{22.57}{\sqrt{20} }$]

[60.19;81.31]

With a confidence level of 95%, you'd expect that the interval [60.19;81.31] will include the population mean of the money saved by doing tele-visits instead of office visits to the doctor.

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