Question

The cost of treatment per patient for a certain medical problem was modelled by one insurance company as a normal random variable with mean RS 775 and a standard deviation of RS 150. What is the probability that the treatment cost of a patient is less than RS 1,000, based on this model?

Answer 1

Answer:

0.93319 .

Step-by-step explanation:

We are given that the cost of treatment per patient for a certain medical problem was modeled by one insurance company as a normal random variable with mean RS 775 and a standard deviation of RS 150 i.e.;

 $\mu$ = 775      and     $\sigma$ = 150

Also, Z = $\frac{X-\mu}{\sigma}$ ~ N(0,1)

Let X = treatment cost of a patient

P(X < 1000) = P( $\frac{X-\mu}{\sigma}$ < $\frac{1000-775}{150}$ ) = P(Z < 1.5) = 0.93319 {Directly from z table}

Therefore, probability that the treatment cost of a patient is less than RS 1,000, based on this model is 0.93319 .