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.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
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Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
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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.
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