The cost of treatment per patient for a certain medical problem is modeled by an insurance company to follow a normal distribution with mean $775 and standard deviation $150. For each of the questions in (a) — (d) first draw a sketch of a normal curve and shade the area of interest. Secondly, use Table A to find the corresponding probability. Show all work for full credit. (a) What is the probability that the treatment cost of a patient is less than $811? (b) What is the probability that the treatment cost of a patient is more than $550? (c) What is the probability that the treatment cost of a patient is between $550 and $900?(d) How much do the 10% most expensive treatments cost at least? (e) How much do the cheaper half of all treatments cost at most? $775 (f) How do you know this without any calculations? For the normal distribution (symmetric & bell-shaped) the mean equals the median. By definition the median is the 50th percentile allowing us to derive the costs of
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