Nationwide, the amount charged by doctors for performing a particular minor surgical procedure has standard deviation (σ) of $300. The local hospital gives an estimate of $1220 for the surgery. We wish to test whether the hospital has given us an overestimate of the bill. To do so, we randomly select 160 bills from the population of all bills charged for this surgery. Let x represent the average amount charged for these 160 surgical procedures. We find that x = $1180. Carry out the hypothesis test, stating null and alternative hypotheses, drawing picture, finding the p-value and stating conclusion.

Nationwide, the amount charged by doctors for performing a particular minor surgical procedure has standard deviation (σ) of $300. The local hospital gives an estimate of $1220 for the surgery. We wish to test whether the hospital has given us an overestimate of the bill. To do so, we randomly select 160 bills from the population of all bills charged for this surgery. Let x represent the average amount charged for these 160 surgical procedures. We find that x = $1180. Carry out the hypothesis test, stating null and alternative hypotheses, drawing picture, finding the p-value and stating conclusion.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.4: Distributions Of Data

Problem 19PFA

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Question

Nationwide, the amount charged by doctors for performing a particular minor surgical procedure has standard deviation (σ) of $300. The local hospital gives an estimate of $1220 for the surgery. We wish to test whether the hospital has given us an overestimate of the bill. To do so, we randomly select 160 bills from the population of all bills charged for this surgery. Let x represent the average amount charged for these 160 surgical procedures. We find that x = $1180.
Carry out the hypothesis test, stating null and alternative hypotheses, drawing picture, finding the p-value and stating conclusion.

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