Question 12.36

12.36 Hospital losses again.

Table 12.4 (page 615) gives data on a hospital's losses for 120 joint replacement patients, collected as 15 monthly samples of eight patients each. The process has been in control, and losses have a roughly Normal distribution. The sample standard deviation () for the individual measurements is 811.53. The hospital decides that suitable specification limit for its loss in treating one such patient is .

hloss

  1. Estimate the percent of losses that meet the specification.
  2. Estimate .