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    Confidence Interval

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    Annual family dental expenses for the families of a random sample of ten employees of a company are given below. You can assume the family dental expenses for the employees of the company are normally distributed.
    $450, $390, $550, $140, $690, $600, $250, $330, $490, $810

    a) Compute the mean and standard deviation of the sample.
    b) Determine the point estimate and 95% confidence interval for the mean family dental expenses of all employees of the company.
    c) Interpret the confidence interval.
    d) How would you communicate this information to the Vice-President of Human Resources in non-statistical language.
    e) How could this information be used in negotiations with the dental insurer of the company in setting the premiums for the next year.

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    Solution Summary

    Step by step method for computing confidence interval is given in the answer.