Hypothesis testing-insurance data set

Reference no: EM13111194

An auditor reviewed 25 oral surgery insurance claims from a particular surgical office, determining that the mean out-of-pocket patient billing above the reimbursed amount was $275.66 with a standard deviation of $78.11. At the 5% level of significance, does this sample prove a violation of the guideline that the average patient should pay no more than $250 out-of-pocket?

A. Write the Hypothesis

B. Specify the Decision Rule

C. Calculate the Test Statistic

D. Make the Decision

E. Give an interpretation of the Decision

F. P-value Method

1. Calculate the P-value, what is it?

2. Does that P-value support the Decision in Part D?

Reference no: EM13111194

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