document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=218802>Question 218802</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please show calculation to the problem. A auditor reviewed 25 oral surgery insurance claimed from particular surgical office, determining that the mean out-of-pocket patient billing above the rembursed amount was $ 275.66 with a standard deviation of $ 78.11. (a) At the 5 percernt level of significance, does this sample prove a violation of the guideline that the average patient should pay no more than $ 250 out-of-pocket:  State your hypothesis and decision rule.  (b)  Is this a close decision? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #164765 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=164765\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Please show calculation to the problem. A auditor reviewed 25 oral surgery insurance claimed from particular surgical office, determining that the mean out-of-pocket patient billing above the rembursed amount was $ 275.66 with a standard deviation of $ 78.11. <BR>\n" );
document.write( "(a) At the 5 percernt level of significance, does this sample prove a violation of the guideline that the average patient should pay no more than $ 250 out-of-pocket: State your hypothesis and decision rule.<BR>\n" );
document.write( "Ho: u = 250<BR>\n" );
document.write( "H1: u > 250<BR>\n" );
document.write( "---<BR>\n" );
document.write( "invT(0.95,24) = 1.711<BR>\n" );
document.write( "At the 5% level for a one-tail test, reject Ho if t > 1.711 <BR>\n" );
document.write( "(b) Is this a close decision?<BR>\n" );
document.write( "t(275.66) = (275.66-250)/[78.11/sqrt(25)] = 25.66*5/78.11 = 1.64<BR>\n" );
document.write( "----<BR>\n" );
document.write( "Conclusion: Fail to reject Ho.<BR>\n" );
document.write( "Not really a close decision.<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );