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[Red Cross Red Shield] The distribution of the amount paid in health claims by Red Cross...

[Red Cross Red Shield] The distribution of the amount paid in health claims by Red Cross Red Shield (RCRS), a medical insurance company, on individual health insurance plans for college students has mean $800, median $700, and standard deviation $500.

Instead of annual amount paid to an individual, we are interested in the average amount paid of a sample. If we select a random sample of n = 60 plan members and compute the average amount paid to the 60 plan members (i.e.,  ). What is the expected value of the sample average, E[  ]?

a.

$700
b.

$48,000
c.

$1,500
d.

$800
math   Statistics-And-Probability   
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