Next use either sorting or construct the appropriate

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Next: use either sorting or construct the appropriate histogram or rule of thumb to answer the questions: What is approximate probability that Treatment 3 has annual cost less than $1150? Type: Multiple Choice Points Awarded: 5.5/5.5
12/15/2016 WebCOM™ 2.0 Question 19 : Your health insurance company has converge for three types of medical treatment . The annual cost for each type of treatment can be modeled using Gaussian (Normal) distribution, with the following parameters: Treatment 1: Mean=$1600 and Standard Deviation=$120 Treatment 2: Mean=$1500 and Standard Deviation=$95 Treatment 3: Mean=$1200 and Standard Deviation=$70 Use Random number generator and simulate 1000 long columns , for each of the three cases. Example: for the Treatment 1, use Number of variables=1, Number of random numbers=1000, Distribution=Normal, Mean=1600 and Standard deviation=120, and leave random Seed empty. Next: use either sorting or construct the appropriate histogram or rule of thumb to answer the questions: Which of the three treatment is most likely to cost between $1200 and $1300? Type: Multiple Choice Points Awarded: 5.5/5.5
17/18 Question 20 : Your health insurance company has converge for three types of medical treatment . The annual cost for each type of treatment can be modeled using Gaussian (Normal) distribution, with the following parameters: Treatment 1: Mean=$1600 and Standard Deviation=$120 Treatment 2: Mean=$1500 and Standard Deviation=$95 Treatment 3: Mean=$1200 and Standard Deviation=$70 Use Random number generator and simulate 1000 long columns , for each of the three cases. Example: for the Treatment 1, use Number of variables=1, Number of random numbers=1000, Distribution=Normal, Mean=1600 and Standard deviation=120, and leave random Seed empty. Next: use either sorting or construct the appropriate histogram or rule of thumb to answer the questions: For which of the three treatments we expect that (approximately) 95% of cases will be between $1300 and $1700?
12/15/2016 WebCOM™ 2.0 Type: Multiple Choice Points Awarded: 5.5/5.5
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