A billing company that collects bills for doctors' offices in the area is concerned that the percentage of bills being paid by medical insurance has risen. Historically, that percentage has been 30%. An examination of 9 comma 260 recent, randomly selected bills reveals that 31% of these bills are being paid by medical insurance. Is there evidence of a change in the percent of bills being paid by medical insurance? 1) Write the appropriate hypotheses. Let p be the proportion of bills being paid by medical insurance.
A. H0: p = 0.30
HA: p not equal to 0.30
B. H0: p = 0.29
HA: p note qual to 0.29
C. H0: p = 0.30
HA: p > 0.30
D. H0: p = 0.30
HA: p < 0.30
E. H0: p = 0.29
HA: p < 0.29
F. H0: p = 0.29
HA: p > 0.29
2) Check the assumptions and conditions.
A. The Independence Assumption is met.
B. The 10% Condition is met.
C. The Randomization Condition is met.
D. The Success/Failure Condition is met.
3) Perform the test and find the P-value. What is the test statistic? What is the P-value?
4) State your conclusion.
A. Fail to reject H0. There is not sufficient evidence to suggest that the percentage of bills paid by medical insurance has changed.
B. Fail to reject H0. There is sufficient evidence to suggest that the percentage of bills paid by medical insurance has changed.
C. Reject H0. There is sufficient evidence to suggest that the percentage of bills paid by medical insurance has changed.
D. Reject H0. There is not sufficient evidence to suggest that the percentage of bills paid by medical insurance has changed.
E) Do you think this difference is meaningful?
A. Yes, the conclusion of the hypothesis test shows that the difference has financial significance to the company.
B. No, the conclusion of the hypothesis test shows that the difference has no financial significance to the company.
C. Not necessarily. The difference is statistically significant, but the actual change in the proportion is small. We cannot tell from the P-value alone if the difference has financial significance to the company. Get more help from Chegg