b. The United Medical Agency is investigating the cost of maintaining the diabetic patients within its plan. These patients have typically been running up costs at the rate of $1,240 per month. A sample of 8 cases were observed and the costs are given below: Patient A B с D E F G H Costs 1260 1172 1181 1101 1103 1360 1281 1115 i. Calculate a 95% confidence interval for the mean cost. 11. 111. Comment on the hypothesis that the mean cost is greater than $1,240. Use the 5% level of significance. Include all steps. Comment on the hypothesis that the mean cost is equal to $1,240. Use the 10% level of significance. Include all steps.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
b. The United Medical Agency is investigating the cost of maintaining the diabetic patients
within its plan. These patients have typically been running up costs at the rate of $1,240
per month. A sample of 8 cases were observed and the costs are given below:
Patient
A B с
D
E F G
H
Costs
1260 1172 1181 1101 1103 1360 1281 1115
i.
Calculate a 95% confidence interval for the mean cost.
11.
111.
Comment on the hypothesis that the mean cost is greater than $1,240. Use the 5% level
of significance. Include all steps.
Comment on the hypothesis that the mean cost is equal to $1,240. Use the 10% level
of significance. Include all steps.
Transcribed Image Text:b. The United Medical Agency is investigating the cost of maintaining the diabetic patients within its plan. These patients have typically been running up costs at the rate of $1,240 per month. A sample of 8 cases were observed and the costs are given below: Patient A B с D E F G H Costs 1260 1172 1181 1101 1103 1360 1281 1115 i. Calculate a 95% confidence interval for the mean cost. 11. 111. Comment on the hypothesis that the mean cost is greater than $1,240. Use the 5% level of significance. Include all steps. Comment on the hypothesis that the mean cost is equal to $1,240. Use the 10% level of significance. Include all steps.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman