Medicare would like to test the hypothesis that the average monthly rate for one- bedroom assisted-living facility is equal to $3,300. A random sample of 12 assisted- living facilities had an average rate of $3,690 per month. The standard deviation for this sample was $530. Medicare would like to set a = 0.05. Which one of the following statements is true? a. Because the p-value is less than alpha, we fail to reject the null hypothesis and conclude that the average monthly rate for an assisted- living facility is not equal to $3,300. O b. Because the p-value is less than alpha, we reject the null hypothesis and conclude that the average monthly rate for an assisted-living facility is not equal to $3,300. c. Because the p-value is greater than alpha, we fail to reject the null hypothesis and conclude that the average monthly rate for an assisted- living facility is equal to $3,300. Od. Because the p-value is greater than alpha, we fail to reject the null hypothesis and cannot conclude that the average monthly rate for an assisted-living facility is not equal to $3,300.

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Author:Amos Gilat
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Medicare would like to test the hypothesis
that the average monthly rate for one-
bedroom assisted-living facility is equal to
$3,300. A random sample of 12 assisted-
living facilities had an average rate of $3,690
per month. The standard deviation for this
sample was $530. Medicare would like to set
a = 0.05. Which one of the following
statements is true?
O a. Because the p-value is less than
alpha, we fail to reject the null
hypothesis and conclude that the
average monthly rate for an assisted-
living facility is not equal to $3,300.
O b. Because the p-value is less than
alpha, we reject the null hypothesis
and conclude that the average
monthly rate for an assisted-living
facility is not equal to $3,300.
c. Because the p-value is greater than
alpha, we fail to reject the null
hypothesis and conclude that the
average monthly rate for an assisted-
living facility is equal to $3,300.
O d. Because the p-value is greater than
alpha, we fail to reject the null
hypothesis and cannot conclude that
the average monthly rate for an
assisted-living facility is not equal to
$3,300.
Transcribed Image Text:Medicare would like to test the hypothesis that the average monthly rate for one- bedroom assisted-living facility is equal to $3,300. A random sample of 12 assisted- living facilities had an average rate of $3,690 per month. The standard deviation for this sample was $530. Medicare would like to set a = 0.05. Which one of the following statements is true? O a. Because the p-value is less than alpha, we fail to reject the null hypothesis and conclude that the average monthly rate for an assisted- living facility is not equal to $3,300. O b. Because the p-value is less than alpha, we reject the null hypothesis and conclude that the average monthly rate for an assisted-living facility is not equal to $3,300. c. Because the p-value is greater than alpha, we fail to reject the null hypothesis and conclude that the average monthly rate for an assisted- living facility is equal to $3,300. O d. Because the p-value is greater than alpha, we fail to reject the null hypothesis and cannot conclude that the average monthly rate for an assisted-living facility is not equal to $3,300.
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