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Harvard Pilgrim, an insurance company, has reimbursed Cooley Dickinson Hospital for a large number of health services. It appears that overpayments may have occurred on many of the reimbursements due to errors in the billing process, or billing for a more expensive procedure than was actually per

Harvard Pilgrim, an insurance company, has reimbursed Cooley Dickinson Hospital for a large number of health services. It appears that overpayments may have occurred on many of the reimbursements due to errors in the billing process, or billing for a more expensive procedure than was actually per

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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 Harvard Pilgrim, an insurance company, has reimbursed Cooley Dickinson
Hospital for a large number of health services. It appears that overpayments may have
occurred on many of the reimbursements due to errors in the billing process, or billing for
a more expensive procedure than was actually performed. Cooley Dickinson claims that no
more than 1% of the reimbursements it has received have been overpayments. Harvard
Pilgrim suspects that it is being overcharged and wants to get its money back; so they hire
you to prove their claim. You audit a random sample of 500 reimbursements and find that
20 of them involve overpayments. Perform an appropriate hypothesis test. 

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