00:01
So they're looking at the health care expenditures, which, why are they talking about it being a lot lower than what it actually is? but they're going to be doing a hypothesis test, and they would be assuming that, well, they said they want to find out if the mean spending is more than $350.
00:21
So our null would be that it's either equal to $350 or less than or equal to $350.
00:28
And typically, depending on how your textbook is structured, our textbook deals with just using this as inequality.
00:37
And then they're taking a random sample, random sample of six people, and they're going to use that x bar and that sample standard deviation to help them find their test statistic.
00:51
And that means, and they said that these values assume that these values are approximately normal, meaning you would be doing a t test.
01:02
You would be assuming that the mean is $350.
01:07
You'd be getting a test statistic.
01:10
Well, you'd be getting a mean and a standard deviation...