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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   
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