Estimating the Total Family Dental Expenses for Employees: A 90% Confidence Interval Analysis

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Estimating the Total Family Dental Expenses for Employees: A 90% Confidence Interval Analysis The personnel department of a large corporation wants to estimate the family dental expenses of its employees to determine the feasibility of providing a dental insurance plan. There are a total 0f 2,931 employees at the corporation. A sample of 17 employees are asked about their family dental expenses in the preceding year and report an average of X bar equals $ 770.29 with a standard deviation of S equals $ 56.47 Construct a 90% confidence interval estimate of the total family dental expenses for all employees in the preceding year. Here the population standard deviation is unknown and the sample size is small thus we need to use a t-distribution. The df = sample size-1 =17-1=16 As we need a 90% confidence interval so the t-multiplier is = t(0.05,16) = 1.746 hence the 90% confidence interval for the mean is, S 56.47 90% CI for mean = (Sample mean + £(0.05,16) + 5) = (770.29 + 1.746 + 29 —(QTAA ATAR C704 INN — Study
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