document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=126144>Question 126144</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/0072966939/algebrahomeworkh>Applied Statistics in Business and Economics</A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> Help please? I greatly need it with a lack of acceptable examples that are similiar to go by. <BR>\n" );
document.write( "An auditor reviewed 25 oral surgery insurance claims from a particular surgical office, determining that the mean out-of-pocket patient billing above the reimbursed amount was $275.66 with a standard deviation of $78.11. (a) At the 5 percent 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 #92445 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=92445\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> An auditor reviewed 25 oral surgery insurance claims from a particular surgical office, determining that the mean out-of-pocket patient billing above the reimbursed amount was $275.66 with a standard deviation of $78.11. (a) At the 5 percent 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?<BR>\n" );
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document.write( "Ho: mu=250<BR>\n" );
document.write( "Ha: mu>250<BR>\n" );
document.write( "alpha = 5%,  so critical value is t = 1.645<BR>\n" );
document.write( "Test Statistic: t(275.66) = (275.66-150)/[78.11/sqrt25] = 1.642555...<BR>\n" );
document.write( "p-value = 0.056757<BR>\n" );
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document.write( "Conclusion:<BR>\n" );
document.write( "Fail to reject Ho because p-value is greater than 5%, but not by much.<BR>\n" );
document.write( "(b) Is this a close decision?<BR>\n" );
document.write( "You bet it is.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( " </SPAN>\n" );
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