Active management of labor (AML) is a group of interventions designed to help reduce the length of labor and the rate of cesarean deliveries. Physicians from the Department of Obstetrics and Gynecology at the University of New Mexico Health Sciences Center were interested in determining whether AML would also translate into reduced cost of delivery. According to their study, 300 AML deliveries had sample mean cost of $2,480 and sample standard deviation of $766. At the time of the study, the average cost of having a baby in a U.S. hospital was $2,528.
Active management of labor (AML) is a group of interventions designed to help reduce the length of labor and the rate of cesarean deliveries. Physicians from the Department of Obstetrics and Gynecology at the University of New Mexico Health Sciences Center were interested in determining whether AML would also translate into reduced cost of delivery. According to their study, 300 AML deliveries had sample mean cost of $2,480 and sample standard deviation of $766. At the time of the study, the average cost of having a baby in a U.S. hospital was $2,528.
a. The value of the test statistic and the p-value is
b. If five percent significance level is used the rejection region is
c. At 5% significance level we can conclude that mean AML delivery cost
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