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Problem 11 Easy Difficulty

Manydrugs used to treat cancer are expensive. Business Week reported on the cost per treatment of Herceptin, a drug used to treat breast cancer (Business Week, January $30,2006 )$ . Typical treatment costs (in dollars) for Herceptin are provided by a simple random sample of 10 patients.
$\begin{array}{llll}{4376} & {5578} & {2717} & {4920} & {4495} \\ {4798} & {6446} & {4119} & {4237} & {3814}\end{array}$
a. Develop a point estimate of the mean cost per treatment with Herceptin.
b. Develop a point estimate of the standard deviation of the cost per treatment with Herceptin.


a. 4550
b. 1003.8


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Video Transcript

All right, so we're given a set of them treatment costs. 10 of them were supposed to use thes sample one trees as a point estimate of the Sorry to find a point estimate of the mean and the standard deviation. So strong with our point estimate. Far the mean. We're just gonna add these up like so and then divide this by the number of entries, which is 10. You add up this top part, it becomes 45,000 500. Divide that by 10 and you get that your point estimate for the meanest 4550. All right, standard deviation, which is a much longer process. And I've already pre written part of it, just for the sake of gravity and me not having to transcribe everything. Ah, while trying to record. So anyway, here are all of our data points. What we do is that we subtract our point estimate for the mean from all these. So that's gonna be ah, negative. 1 74 cause off. 4376 minus 4550 is negative. 1 74 5578 Minus 4500 50 equals that and we keep going down the line like so. And then we're gonna square all these differences. And that's what you get here When you add all these up. That is a terrible looking Sigma. I'm sorry. Hold on. We're gonna rewrite that. Also, this brackets Not great either, but hey, whatever. Anyway, this adds up to 9,068,000 620. We're going to divide that by N plus one, which is 11 s o. We get that. Our, um point Usman for variance is one million. Ah! Oh, wait. Sorry. And minus one and plus one My bad, which is gonna be nine. Yeah. I was wondering why that didn't look right in my work anyway. Ah, that will be Let's see, one million. Ah, 7000 624.44 You take the square root of that you get s is equal to 1003 0.8. There you have it