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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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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