Mean Hypothesis Test 01b The Kaiser Medical Foundation claims that the cost to r

Question

Mean Hypothesis Test 01b The Kaiser Medical Foundation claims that the cost to rehabilitate a football player following a head injury is at least $28,500. To test this claim a researcher surveys the medical billing records of 45 football players who were treated for head injuries. The average cost for rehabilitation in this randomly selected sample is $30,885 with a standard deviation of $1,123. Is the actual cost of rehabilitation at least $28,500 as Kaiser claims? Please select al TRUE statements for this hypothesis test. Answer 1, O Ho: $ 28,500 and H1, ? > $ 28,500 2. O Ho: ? 2 $ 28,500 and H1: ?

Explanation / Answer

Correct answer: option (1) H0: Mu < = 28500 and H1: Mu>28500

since

H0: The actual cost of rehabilitation is not greater than 28500

i.e. kasier claim is not valid

H1:The actual cost of rehabilitation is greater than 28500

i.e. kasier claim is valid

Correct answer: option (3) Test statsitic is 14.25

since

t = (30885 - 28500) / (1123/sqrt(45)) = 14.25

Correct answer: option (5)  

since t value is > t critical value 1.6802 so we reject H0

thus we conclude that kasier claim is valid

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