The Human Relations Department of Electronics Inc. would like to include a dental plan as part of the benefits package. The question is: How much does a typical employee and his or her family spend per year on dental expenses? A sample of 45 employees reveals the mean amount spent last year was $ 1,820, with a standard deviation of $ 660.
a. Construct a 95 percent confidence interval for the population mean.
b. The information from part (a) was given to the president of Electronics Inc. He indicated he could afford $ 1,700 of dental expenses per employee. Is it possible that the population mean could be $ 1,700 ? Justify your answer.