Many drugs used to treat cancer are expensive. BusinessWeek reported on the cost

Question

Many drugs used to treat cancer are expensive. BusinessWeek reported on the cost per treatment of Herceptin, a drug used to treat breast cancer (BusinessWeek, January 30, 2006). Typical treatment costs (in dollars) for Herceptin are provided by a simple random sample of 10 patients. 1. 4,368 5,576 2,714 4,915 4,484 4,796 6,443 4,123 4,240 3,828

Develop a point estimate of the mean cost per treatment with Herceptin.

Develop a point estimate of the standard deviation of the cost per treatment with Herceptin (to 1 decimal).

Explanation / Answer

Getting the mean, X,          
          
X = Sum(x) / n          
Summing the items, Sum(x) =    45487      
As n =    10      
Thus,          
X =    4548.7       [ANSWER, POINT ESTIMATE OF MEAN]

*****************************
          
Setting up tables,          
x   x - X   (x - X)^2  
4368   -180.7   32652.49  
5576   1027.3   1055345.29  
2714   -1834.7   3366124.09  
4915   366.3   134175.69  
4484   -64.7   4186.09  
4796   247.3   61157.29  
6443   1894.3   3588372.49  
4123   -425.7   181220.49  
4240   -308.7   95295.69  
3828   -720.7   519408.49  
          
Thus, Sum(x - X)^2 =    9037938.1      
          
Thus, as           
          
s^2 = Sum(x - X)^2 / (n - 1)          
          
As n =    10      
          
s^2 =    1004215.344      
          
Thus,          
          
s =    1002.105456   [ANSWER, POINT ESTIMATE, STANDARD DEVIATION]  

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