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# Continuous probability distribution - Dental insurance for employees

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Shaver Manufacturing, offers dental insurance to its employees. A recent study by the Human Resource Director shows the annual cost per employee per year followed the normal distribution, with a mean of \$1280 and a standard deviation of \$420.

What fraction of the employees cost more than \$1500 per year for dental expenses?

What fraction of the employees cost between \$1500 and \$2000 per year?

Estimate the percent that did not have any dental expense.

What was the cost for the 10 percent of employees that incurred the highest dental expense?

https://brainmass.com/statistics/probability/continuous-probability-distribution-dental-insurance-employees-45217

#### Solution Preview

Solution
2.
We are given that annual cost has a normal distribution N (1280, 420). The fraction of employees cost more than \$ 1500 per year is given by
P [x >1500] = 1- P[x â‰¤ 1500]
= 1- P [ ]
= 1-p [ z â‰¤ .52 ]
=
= .3015 using table of N(0,1)
= .30 or 30%

â†’ 30% of The employees me cost more ...

#### Solution Summary

Using equations and calculations, this solution determines the percentage of employees in each group in relation to dental expenses, as well as the highest dental expense.

\$2.49