Question

Health Insurers are beginning to offer telemedicine services online that replace the common office visit. Wellpoint provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments (Bloomberg Businessweek, March 4-9, 2014). Wellpoint claims that users of its LiveHealth Online service saved a significant amount of money on a typical visit. The standard deviation for the amount saved has historically remained steady at 24.86. a sample of 90 online doctor visits revealed a mean amount of $62 saved

Assuming the population is roughly symmetric, construct a 95% confidence interval for population the mean savings for a televisit to the docotr as opposed to an office visit.

round z ot t value 3 decimal places. round final answers to two decimal places

Answer 1

Degrees of freedom = 90 - 1 = 89

For 89 degrees of freedom and 95% confidence,

Critical t value = 1.987

Hence,

95% confidence interval will be:

62 +1.987 * 24.86/V90

62 +5.21

(56.79, 67.21)