Question

An extensive study of the cost of health care in the United States presented data showing that the mean spending per Medicare enrollee in 2020 was $6883. To investigate differences across the country, a researcher took a sample of 40 Medicare enrollees in Indianapolis. For the Indianapolis sample, the mean 2020 Medicare spending was $5980 and the standard deviation was $2518. a. State the hypotheses that should be used if we would like to determine whether the mean annual Medicare spending in Indianapolis is lower than the nation mean. (1 marks) b. Use the preceding sample results to compute the test statistic and the p-value. (Use Excel to find the p-value). (4 marks) c. Use α = 0.05. What is your conclusion? (2 marks) d. Repeat the hypothesis test using the critical value approach. (3 marks)

          An extensive study of the cost of health care in the United
States presented data showing that the mean spending per Medicare
enrollee in 2020 was $6883. To investigate differences across the
country, a researcher took a sample of 40 Medicare enrollees in
Indianapolis. For the Indianapolis sample, the mean 2020 Medicare
spending was $5980 and the standard deviation was $2518.
a. State the hypotheses that should be used if we would like to
determine whether the mean annual Medicare spending in Indianapolis
is lower than the nation mean. (1 marks)
b. Use the preceding sample results to compute the test
statistic and the p-value. (Use Excel to find the p-value). (4
marks)
c. Use α = 0.05. What is your conclusion? (2 marks)
d. Repeat the hypothesis test using the critical value approach.
(3 marks)

Added by Joel C.

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