SOLUTION: Assume a simple random sample has been taken, the population standard deviation is known, and the population is normally distributed. According to a sample of 200 various insurance

Question 1086068: Assume a simple random sample has been taken, the population standard deviation is known, and the population is normally distributed. According to a sample of 200 various insurance brokers and health experts, a typical childbirth in the United States costs a mean of $9500. Assume we know from a previous study, the standard deviation of the cost of the births is $2500. Use a 98% confidence level.
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Find the margin of error E that corresponds to the above statistics and confidence level
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
98% CI interval is +/- 2.328*sigma/sqrt(n)
=2.328*2500/sqrt(200)
=411.54, interval width/margin of error
(9088.46, 9911.54)
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