Annual family dental expenses for families of random sample of 10 employees of company are given below. You can suppose 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.