Conduct a Full Hypothesis Test and Determine If the Given $\sigma = \$ 210$

question 41

Multiple Choice

Conduct a full hypothesis test and determine if the given claim is supported or not supported at the 0.05 significance level. Round all amounts and standard scores to two decimal places.
-A health insurer has determined that the "reasonable and customary" fee for a certain medical procedure is $1200. They suspect that the average fee charged by one particular clinic for this procedure is higher than $1200.
The insurer wants to perform a hypothesis test to determine whether their suspicion is correct. The mean fee charged by the clinic for a random sample of 65 patients receiving this procedure was $1280. Test whether the claim that the mean fee charged by this particular clinic is higher than $1200 is supported or not supported. Assume that $\sigma = \$ 210$

• A)not supported
• B)supported

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Definitions:

Contract

A legally enforceable agreement between two or more parties with mutual obligations.

Body's Position

The arrangement or posture of the body, often in relation to its surroundings, which can impact one's health, functionality, and interaction with the environment.

Balance

refers to the ability to maintain bodily equilibrium or stability, as well as a harmonious or appropriate proportion of elements within a whole.

Mobility

The ability to move or be moved freely and easily, which can refer to physical movement, socioeconomic mobility, or migrations.