The admitting office at Sisters of Mercy Hospital wants to be able to inform patients of the average level of expenses they can expect per day. Historically, the average has been approximately $1280. The office would like to know if there is evidence of a decrease in the average daily billing. Seventy-seven randomly selected patients have an average daily charge of $1263 with a standard deviation of $272. Conduct a hypothesis test to determine whether there is evidence that average daily charges have decreased at a significance level of α = 0.05. Assume the population of daily hospital charges is approximately normally distributed. Step 1 of 3: State the null and alternative hypotheses for the test. Fill in the blank below. Ho : μ = 1280 Ha H 1280

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
Step 2 of 3: Compute the value of the test statistic. Round your answer to three decimal places.
 
 
Step 3 of 3: 
Draw a conclusion and interpret the decision.
The admitting office at Sisters of Mercy Hospital wants to be able to inform patients of the average level of expenses they can expect per day.
Historically, the average has been approximately $1280. The office would like to know if there is evidence of a decrease in the average daily
billing. Seventy-seven randomly selected patients have an average daily charge of $1263 with a standard deviation of $272. Conduct a hypothesis
0.05. Assume the population of
test to determine whether there is evidence that average daily charges have decreased at a significance level of a
daily hospital charges is approximately normally distributed.
Step 1 of 3: State the null and alternative hypotheses for the test. Fill in the blank below.
Ho : μ
Ha
1280
1280
Transcribed Image Text:The admitting office at Sisters of Mercy Hospital wants to be able to inform patients of the average level of expenses they can expect per day. Historically, the average has been approximately $1280. The office would like to know if there is evidence of a decrease in the average daily billing. Seventy-seven randomly selected patients have an average daily charge of $1263 with a standard deviation of $272. Conduct a hypothesis 0.05. Assume the population of test to determine whether there is evidence that average daily charges have decreased at a significance level of a daily hospital charges is approximately normally distributed. Step 1 of 3: State the null and alternative hypotheses for the test. Fill in the blank below. Ho : μ Ha 1280 1280
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman