Question

4. (15pts) An insurance company claims that the average annual health cost for the families of...

4. (15pts) An insurance company claims that the average annual health cost for the families of all workers is $210. However, the Union representing these workers claims that the annual cost is greater than the amount stated by this insurer. JMP output for the data analysis was shown below.

  1. (a) Use the JMP output below, compute a 95% CI for the true annual mean cost of health care for the families of all workers. (5pts)

  2. (b) Use the JMP results below to analyze the claim made by the Union (Give the null and alternative hypothesis, report the test statistic, p-value and then clearly state your conclusion).(10pts)

JMP OUTPUT: Hypothesized Value Actual Estimate DF

Std Dev

Test Statistic Prob > |t| Prob > t Prob < t

210 253.4 21 101.1 t Test 2.0142 0.0570 0.0285* 0.9715

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A pet association claims that the mean annual cost of food for dogs and cats are...
A pet association claims that the mean annual cost of food for dogs and cats are the same. The results for samples for the two types of pets are shown below. Is there enough evidence at ? = 0.05 to reject the pet association’s claim? Assume the population variances are not equal. Assume the samples are random and independent and the populations are normally distributed. Dogs Cats ?̅̅1̅ = $210    ?̅̅2̅ = $187 ?1 = 35 ?1 = 31 ?1...
With double-digit annual percentage increases in the cost of health insurance, more and more workers are...
With double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The following sample data provide a comparison of workers with and without health insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies that have fewer than 100 employees. Medium companies have 100 to 999 employees, and large companies have 1000 or more employees. Sample...
Let’s say the average per capita annual health care cost for mid-size US-based corporations is $5,886.  An...
Let’s say the average per capita annual health care cost for mid-size US-based corporations is $5,886.  An organization competing for business has funded several health maintenance organizations (HMOs).   A sample of their average annual costs per person is as follows: $5591  4451    5546    4494    4437    5561    5527    5523    6602    4481     The hypothesis is that HMOs are an improvement.   Are they? (5 pts. Each) a) State the appropriate null hypothesis and alternative hypothesis. (Should it be one- or two-tailed?) b) Calculate the mean, standard error, and t-statistic. c) If you want to be...
A study conducted by the research department of a pharmaceutical company claims that the annual spending...
A study conducted by the research department of a pharmaceutical company claims that the annual spending (per person) for prescription drugs for allergy relief, μ1, is greater than or equal to the annual spending (per person) for non-prescription allergy relief medicine, μ2. A health insurance company conducted an independent study and collected data from a random sample of 200 individuals for prescription allergy relief medicine. The sample mean is found to be 17.5 dollars/year, with a sample standard deviation of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT