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A recent study of healthcare systems in Asia revealed that patients in China pay the highest premiums and believe their system is the best in the world. However a citizens group claims that more than half of all patients in China perceive a lack of consultation regarding medical treatment. The information will be used to determine whether there is any evidence that the proportion of patients who perceive a lack of consultation, p, is greater than 0.50. If there is evidence that p is greater than 0.50 physicians malpractice insurance premiums will be increased.
a) State the null and alternative hypotheses in terms of p
b) Describe a type 1 and a type 2 error in this context
c) Which error is more serious for physicians? Why?
d) Which error is more serious for patients? Why?
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