Confidence interval estimation, Advanced Statistics

Assignment Help:

An auditor for a government agency needs to evaluate payments for doctors' office visits paid by Medicare in a small regional town during the month of June. A total of 25,056 visits occurred during June in this small regional town. The auditor wants to estimate the total amount paid by Medicare to within ± $5 with 95% confidence. On the basis of past experience, she believes that the standard  deviation is approximately $30.

(a) What sample size should she select?

Using the sample size selected in (a), an audit was conducted and it was found that the sample mean amount of reimbursement was $93.70 and the sample standard deviation was $34.55. In 12 of the office visits, an incorrect amount of reimbursement was provided. For the 12 office visits in which there was an incorrect reimbursement, the differences between the amount reimbursed and the amount that the auditor determined should have been reimbursed were as follows

$17 $25 $14 -$10 $20 $40 $35 $30 $28 $22 $15 $5

(b) Construct a 90% confidence interval estimate of the population proportion of reimbursements that contain errors.

(c) Construct a 95% confidence interval estimate of the population mean reimbursement per office visit.

(d) Construct a 95% confidence interval estimate of the population total amount of reimbursements for this small regional town.

(e) Construct a 95% confidence interval estimate of the total difference between the amount reimbursed and the amount that the auditor determined should have been reimbursed.


Related Discussions:- Confidence interval estimation

Probability distribution of the net present value, Suppose that $4 million ...

Suppose that $4 million is available for investment in three projects.  The probability distribution of the net present value earned from each project depends on how much is invest

Gambling, It is the art of attempting to exchange something quite small and...

It is the art of attempting to exchange something quite small and certain, for something which are large and uncertain. Gambling is big business; in the US, for instance, it is at

Disability adjusted life years (dalys), This is an attempt to measure the s...

This is an attempt to measure the suffering caused by the illness which takes into the account both the years of the potential life lost due to the premature mortality as well as t

Regression analysis, with the help of regression analysis create a model th...

with the help of regression analysis create a model that best describes the situation. Indicate clearly the effect that each factors given in the attached file and other factors ma

Explain o. j. simpson paradox, O. J. Simpson paradox is a term coming from...

O. J. Simpson paradox is a term coming from the claim made by the defence lawyer in murder trial of O. J. Simpson. The lawyer acknowledged that the statistics demonstrate that onl

Goodmanand kruskal measures of association, Goodmanand kruskal measures of ...

Goodmanand kruskal measures of association is the measures of associations which are useful in the situation where two categorical variables cannot be supposed to be derived from

Explain perturbation theory, Perturbation theory : The theory useful in ass...

Perturbation theory : The theory useful in assessing how well a specific algorithm or the statistical model performs when the observations suffer less random changes. In very commo

Accelerated life testing, Normal 0 false false false EN...

Normal 0 false false false EN-US X-NONE X-NONE

Likert scales, Likert scales is often used in the studies of attitudes in ...

Likert scales is often used in the studies of attitudes in which the raw scores are based on the graded alternative responses to each of a series of queries. For instance, the sub

Explain intervention analysis in time series, Intervention analysis in time...

Intervention analysis in time series : The extension of the autoregressive integrated moving average models applied to time series permitting for the study of the magnitude and str

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd