Medicare Would Like to Test the Hypothesis That the Average $$\bar { x }$$

question 33

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 ? = 0.05. The correct hypothesis statement for this hypothesis test would be

• A)H₀: µ c $3,300; H₁: µ < $3,300.
• B)H₀: µ = $3,300; H₁: µ × $3,300.
• C)H₀: \[\bar { x }\] = $3,300; H₁: \[\bar { x }\] × $3,300.
• D)H₀: µ × $3,300; H₁: µ = $3,300.

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Definitions:

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided chiefly by the aggregate interactions of a country's citizens and businesses.

Personal Liability

The legal responsibility of an individual to cover the loss or damage incurred by their actions, potentially affecting their personal assets.

New Middle Class

A socio-economic group that emerged in industrial societies, characterized by higher education levels, professional occupations, and relatively high income.