Medicare Would Like to Test the Hypothesis That the Standard

question 1

Multiple Choice

Medicare would like to test the hypothesis that the standard deviation for the monthly rate for a one- bedroom assisted- living facility is more than $400. A random sample of 17 assisted living facilities had a standard deviation of $530. The test statistic for this hypothesis test would be ________.

• A)28.09
• B)15.06
• C)19.72
• D)24.56

---

Definitions:

Purchasing Power

The amount of goods or services that one unit of currency can buy, often used to measure the impact of inflation.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, thus eroding purchasing power.

Nominal Rate of Interest

The stated interest rate of a bond or loan, which does not account for inflation or the compounding of interest.

Purchasing Power

The ability of an individual or entity to buy goods and services, essentially reflecting the value of money in terms of the quantity of goods or services it can buy.