(a) The director of an inner-city hospital believes that the mean cost per gunshot injury of patients admitted to the hospital’s emergency room is $18,000. To study whether the mean cost is different than $18,000, a random sample of 8 gunshot injuries is studied and found to have a mean of $17,763 with a standard deviation of s= $356.Conduct a hypothesis test and determine whether or not the conclusion of the test refutes the director’s claim. Assume the population is normally distributed and use a significance level of α= 0.10. (b) You work for an inner-city hospital and want to find the mean cost per gunshot injury of patients admitted to the hospital’s emergency room. You randomly sample 8 gunshot injuries and find that the
(a) The director of an inner-city hospital believes that the
(b) You work for an inner-city hospital and want to find the mean cost per gunshot injury of patients admitted to the hospital’s emergency room. You randomly sample 8 gunshot injuries and find that the mean cost is $17,763 with a standard deviation of s= $356. Calculate a 90% confidence interval for the population mean cost.
(c) Explain how the above two statistical procedures lead to the same conclusion.
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