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In an article about the cost of health care, Money magazine reported that a visit to a hospital emergency room for something as simple as a sore throat has a mean cost of $328 (Money, January 2009). Assume that the cost for this type of hospital emergency room visit is normally distributed with a standard deviation of $92. Answer the following questions about the cost of a hospital emergency room visit for this medical service a.What is the probability that the cost will be more than $500? (to 4 decimals) b.What is the probability that the cost will be less than $250? (to 4 decimals) c.What is the probability that the cost will be between $300 and $400? (to 4 decimals) d.If the cost to a patient is in the lower 8% of charges for this medical service, what was the cost of this patient’s emergency room visit? (to 2 decimals)

Business Economics, Economics

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