(Answered) How many observations would the insurance company need? use

Statistics

Suppose a study of 196 randomly sampled privately insured adults with incomes over 200% of the current poverty level is to be used to measure out-of-pocket medical expenses for prescription drugs for this income class. The sample data are in the file DRUG EXPENSES attached.

a. Construct a 95% confidence interval. Based on the information.

b. If the insurance company wanted the margin of error to be plus or minus $2.00 How many observations would the insurance company need? Use the sample standard deviation as a proxy for the population standard deviation and keep the same significance level.

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This task provides a clear working example of confidence intervals for mean and sample size workings. If the insurance company wanted the margin of error to be plus or minus $2.00. How many observations would the insurance company need ? Use the sample standard deviation as a proxy for the population standard deviation and keep the same significance level

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