Annual family dental expenses for the families of a random sample of ten employees of a company are given below. You can assume the family dental expenses for the employees of the company are normally distributed.
$450, $390, $550, $140, $690, $600, $250, $330, $490, $810
a) Calculate 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.