Question 442749: Rising prescription drug prices caused the U.S. Congress to consider laws that would force pharmaceutical companies to offer prescription discounts to senior citizens without drug benefits. The House Government Reform Committee provided data on the prescription cost of some of the most widely used drugs (Newsweek, May 8, 2000). Assume the following data show a sample of the prescription cost in dollars for ZocorŪ, a drug used to lower cholesterol: 110, 112, 115, 99, 100, 98, 104, 126. Assuming a normal population distribution, what is the 95% confidence interval estimate of the population mean cost for a prescription of ZocorŪ?
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Answer by ewatrrr(24785)   (Show Source):
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Hi
sample of the prescription cost in dollars for ZocorŪ, a drug used to lower cholesterol:
110, 112, 115, 99, 100, 98, 104, 126
Find 95% confidence interval estimate of the population mean cost
for a prescription of ZocorŪ?
re sample data: (need to use calulator or exel 'data analysis' tool,etc)
mean = 108
SD = 9.6666
ME =  [9.6666/sqrt(8)] = 6.6986
CI: 108- 6.6986 < u < 108 + 6.6986
a a/2 crtical regions
90% 0.1 5% z <-1.645 z >+1.645
92% 0.8 4% z <-1.751 z >+1.751
95% 0.05 2.50% z <-1.96 z >+1.96
98% 0.02 1% z <-2.33 z >+2.33
99% 0.01 0.50% z<-2.575 z >+2.575
ewatrrr@aol.com
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