document.write( "Question 303632: An IRS representative claims that the average deduction for medical care is $1250. A taxpayer who believes that the real figure is lower, samples 12 families he finds a mean of $934. and a standad deviation of $616. Should his calim be rejected at the 5% significance level?
\n" ); document.write( "Please help...Not sure wat to do. \n" ); document.write( "
Algebra.Com's Answer #217597 by stanbon(75887)\"\" \"About 
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An IRS representative claims that the average deduction for medical care is $1250. A taxpayer who believes that the real figure is lower, samples 12 families he finds a mean of $934. and a standad deviation of $616. Should his calim be rejected at the 5% significance level?
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\n" ); document.write( "Ho: u = 1250
\n" ); document.write( "Ha: u < 1250 (claim)
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\n" ); document.write( "Test Statistic: t(934) = (934-1250)/[616/sqrt(12)] = -1.777
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\n" ); document.write( "p-value = P(t < -1.777 when df = 11) = 0.0516
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\n" ); document.write( "Conclusion: Since the p-value is greater than 5%, fail to reject Ho.
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\n" ); document.write( "Cheers,
\n" ); document.write( "Stan H. \n" ); document.write( "
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