Medicare Would Like to Test the Hypothesis That the Average

question 108

Multiple Choice

Medicare would like to test the hypothesis that the average monthly rate for one-bedroom assisted-living facility is equal to $3,300. A random sample of 12 assisted-living facilities had an average rate of $3,690 per month. The standard deviation for this sample was $530. Medicare would like to set α = 0.05. The conclusion for this hypothesis test would be that because the absolute value of the test statistic is ______

• A)more than the absolute value of the critical value, we cannot conclude that the average monthly rate for an assisted-living facility is not equal to $3,300.
• B)more than the absolute value of the critical value, we can conclude that the average monthly rate for an assisted-living facility is not equal to $3,300.
• C)less than the absolute value of the critical value, we can conclude that the average monthly rate for an assisted-living facility is not equal to $3,300.
• D)less than the absolute value of the critical value, we cannot conclude that the average monthly rate for an assisted-living facility is not equal to $3,300.

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